TOP-10 hostels by the return on equity ratio
Information agency Credinform represents the ranking of the largest Russian hostels. Hostels – legal entities with the largest volume of annual revenue (TOP-10) were selected for the ranking, according to the data from the Statistical Register for the latest available periods (for 2016 - 2018). Then they were ranked by the return on equity ratio (Table 1). The analysis was made on the basis of the data of the Information and Analytical system Globas.
This indicator is used by investors and company’s owners to measure their own investment. The higher the ratio value, the more profitable the investment. By the return on equity with a negative or zero value it is necessary to analyze the advisability and efficiency of investment in the enterprise in the future. In such cases, the ratio value should be compared with other investment.
Too high value of the indicator, in its turn, can negatively affect the financial stability of a company. High profitability implies also higher risks.
For getting of the most comprehensive and fair picture of the financial standing of an enterprise it is necessary to pay attention to all combination of company’s financial indicators and ratios.
|Name, INN, region||Sales revenue, mln RUB||Net profit (loss), mln RUB||Return on equity, %||Solvency index Globas|
|DRUZYA-OTELI I KHOSTELY LLC
|OKEI KHOSTELGRUPP LLC
|SET UYUTNYKH KVARTIR,OBSHCHEZHITII I KHOSTELOV UYUT LLC
|PLANETA KHOSTEL LLC
is in the process of reorganization in the form of transformation, since 09.06.2017
|SET KHOSTELOV ZAKHODI LLC
|SWEET VILLADGE HOSTEL LLC
|Total by TOP-10 companies||319,34||350,08||9,88||6,31|
|Average value by TOP-10 companies||31,93||35,01||0,99||0,63||35,52||106,83|
|Industry average value||33,17||38,79||-12,74||-4,65||3 388,74||1 229,76|
improvement of the indicator to the previous period, decline in the indicator to the previous period.
The average value of the return on equity ratio of TOP-10 companies in 2018 is significantly lower than the average value for the hotel services industry. Two companies improved results in 2018.
Over 10 years, the average values of the return on equity ratio in the hotel services industry have a tendency to increase. (Picture 2).