Information agency Credinform prepared a ranking of the largest Russian rolling-stock manufacturers. Companies with the highest volume of revenue (TOP-10) were selected for this ranking according to the data from the Statistical Register for the latest available periods (2016 and 2015). The enterprises were ranked by collection period ratio (Table 1). The analysis was based on data from the Information and Analytical system Globas.

Collection period (days) is calculated as ratio of the average balance of accounts receivable to total net sales. The ratio represents how much days during the year it took the company to repay the average amount of its accounts payable.

This figure indicates the process of debt recovery to counterparties. The ratio is calculated for the assessment of cash flows that makes possible to conclude about the operating efficiency of a company and selected financial strategy.

The lower is the indicator, the faster the enterprise settles accounts with its suppliers. The increase in turnover can mean both problems with paying bills, and more effective organization of relationships with suppliers, providing more profitable, deferred payment schedule and using payables as a source of cheap financial resources.

Taking into account the actual situation both in economy in general and in the sector, the experts of the Information agency Credinform have developed and implemented in the Information and Analytical system Globas the calculation of practical values of financial ratios, which can be recognized as normal for a particular industry. The practical value for rolling-stock manufacturers is up to 183,77 days.

For the most complete and objective view of the financial condition of the enterprise it is necessary to pay attention to the complex indicators and financial ratios of the company.

Collection period of TOP-10 companies is higher than industry average. Five companies in the TOP have reduced revenue and net profit figures or have losses (marked with red in columns 3 and 5 of Table 1) in 2016 compared to the previous period.

Picture 1. Collection period (ratio, days) and revenue of the largest Russian rolling-stock manufacturers (TOP-10)

The average values of collection period in the period of 2006-2015 demonstrate a tendency towards slowdown (Picture 2).

Picture 2. Change in industry average figures of collection period of the Russian rolling-stock manufacturers in 2006 – 2015

All TOP-10 companies got high Solvency index Globas, which indicates their ability to timely and fully repay their debt obligations.