The leverage ratio of the largest Russian fish processing and preserving companies

ranking 17/05/2017

Information Agency Credinform has prepared the ranking of Russian fish processing and preserving companies. The largest enterprises (TOP-10) in terms of annual revenue were selected according to the data from the Statistical Register for the latest available periods (2015 and 2014). Then the companies were ranged by 2015 leverage ratio (Table 1).

Leverage ratio (or the ratio of borrowed and own funds) is one of the financial stability ratios. The ratios of this group determine the possibility of granting the long-term loans or investing as they characterize the possibility of the company to meet its long-term obligations. The leverage ratio (х) is calculated as a ratio of total borrowed funds to equity capital and shows how many units of borrowed funds the company had attracted to each unit of own sources of financing.

The recommended value of the ratio is less than 1. The ratio of borrowed and own funds should not be negative, therefore the ratio value from 0 to 1 is one of the indicators of company’s high ability to meet its obligations.

The calculation of practical values of financial indicators, which might be considered as normal for a certain industry, has been developed and implemented in the Information and Analytical system Globas-i® by the experts of Information Agency Credinform, taking into account the actual situation of the economy as a whole and the industries. The practical value of leverage ratio for fish processing and preserving companies is from 0 to 5,97.

For the most full and fair opinion about the company’s financial position, the whole set of financial indicators and ratios of the company should be taken into account.

Table 1. Net profit, revenue, leverage ratio, solvency index Globas-i® of the largest Russian fish processing and preserving companies (TOP-10)
Name, INN, region2015 net profit, mln RUB2015 revenue, mln RUB2015/2014 revenue,%Leverage ratio, (х)Solvency index Globas-i®
Yuzhno-Kyrilsky Fish Factory LTD
INN 6518005270 Sakhalin region
720,5 1 637,3 76 0,35 172
The highest
PAO Ozernovsky Fish Canning Plant N 55
INN 4108003484 Kamchatka region
1 213,9 3 336,7 75 0,60 179
The highest
Roskon LLC
INN 3904067043 Kaliningrad region
267,0 2 327,7 28 1,37 264
High
FSUE Arkhangelsk Federal Penitentiary Service
INN 3621005430 Saint-Petersburg
103,7 2 082,1 -19 1,51 266
High
PAO Ryboobrabativayuschy Kombinat № 1
INN 7805024462 Saint-Petersburg
69,5 4 984,2 -13 4,27 202
High
NAO Nizhegorodryba Plus
INN 5260072045 Nizhny Novgorod region
7,2 2 791,6 12 4,34 209
High
NAO RUSSIAN SEA
INN 5031033020 Moscow region
-842,0 7 459,6 -4 -2,87 281
High
NAO Baltic Coast
INN 7826059025 Leningrad region
-232,2 10 065,3 12 9,81 255
High
NAO Yuzhmorrybflot
INN 2508098600 Primorsky Krai
106,2 4 772,6 45 12,74 245
High
LLC RUSSIAN FISH WORLD
INN 5074018058 Moscow
6,1 1 809,3 17 14,85 218
High
Total for TOP-10 group of companies 1 419,7 41 266,3      
Total for TOP-100 group of companies 4 130,8 87 241,8      
Average value within TOP-10 group of companies 142,0 4 126,6 11 4,70  
Average value within TOP-100 group of companies 41,3 872,4 22 18,54  
Industry average value 3,6 88,3 2 5,94  

In 2015 the average value of leverage ratio in TOP-10 group of companies is within the recommended and practical values (red and yellow colors, accordingly, in Table 1 and Picture 1). Meanwhile NAO RUSSIAN SEA has negative value of the ratio. The average values of the ratio within TOP-100 group of companies and industry are higher than recommended and practical values (red color in Table 1).

Leverage ratio and revenue of the largest Russian fish processing and preserving companies (TOP-10)
Picture 1. Leverage ratio and revenue of the largest Russian fish processing and preserving companies (TOP-10).

The industry values of leverage ratio were within recommended and practical values in 2012, 2013 and 2015 (yellow color in Picture 2).

The industry average values of leverage ratio of Russian fish processing and preserving companies in 2006 – 2015
Picture 2. The industry average values of leverage ratio of Russian fish processing and preserving companies in 2006 – 2015.

In 2015 total revenue of 10 largest companies amounted to 47% from TOP-100 total revenue. This fact testifies rather high level of monopolization within industry. Thus, total revenue of 3 largest companies amounted to 26% from TOP-100 total revenue (Picture 3).

The shares of TOP-10 companies in TOP-100 total revenue for 2015, %
Picture 3. The shares of TOP-10 companies in TOP-100 total revenue for 2015, %.

All companies from TOP-10 list have the highest or high solvency index Globas-i®, this fact shows the ability of the companies to meet their obligations in time and fully.

In 2015 five companies from TOP-10 have decrease in revenue in comparison with previous period or have loss (red color in Table 1).

In 2014 the TOP-100 list included 25 loss-making companies and in 2015 their number decreased almost twice to 13. Thus, 2015 average loss is also decreased by 24% (Picture 4).

The number of loss-making companies and their average loss (mln RUB) in 2014 – 2015
Picture 4. The number of loss-making companies and their average loss (mln RUB) in 2014 – 2015.

In general, the industry ratios of fish processing and preserving companies in monetary terms show positive dynamics; this testifies the data from the Federal State Statistics Service (Picture 5 и Table 2).

The growth rate of revenues from processing and preserving of fish in monetary terms, from year to year, %
Picture 5. The growth rate of revenues from processing and preserving of fish in monetary terms, from year to year, %.

Within 2006-2016 the maximum revenue from processing and preserving of fish was in 2016, the minimum - in 2006 (Table 2).

Table 2. Revenue from processing and preserving of fish in monetary terms, mln RUB
20062007200820092010201120122013201420152016
31 382,1 37 941,9 46 494,6 50 303,8 53 747,4 60 554,8 69 081,4 75 651,1 93 943,5 106 478,6 117 835,5

Fish processing and preserving companies are unequally distributed across the country and due to specific nature of activities concentrated in regions located close to sources of raw materials. This fact is confirmed by data from the Information and Analytical system Globas-i®, according to which 100 largest companies in terms of 2015 revenue are registered in 33 Russian regions (Picture 5).

Distribution across the country of 100 largest Russian fish processing and preserving companies
Picture 6. Distribution across the country of 100 largest Russian fish processing and preserving companies.