Collection period of the largest Russian rolling-stock manufacturers

ranking 09/10/2017

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.

Table 1. Net profit, revenue, collection period (ratio, days), Solvency index Globas of the largest Russian rolling-stock manufacturers (TOP-10)
Name, INN, region Net profit, mln RUB Revenue, mln RUB Collection period ratio 2015, days Solvency index Globas
2015 2016 2015 2016
1 2 3 4 5 6 7
CJSC "Management Company" Bryansk Machine Building Plant"
INN 3232035432 Bryansk region
716,4 -378,5 20 592,3 25 300,5 52,55 258 High
LLC PC “Novocherkassk Electric Locomotive Plant”
INN 6150040250 Rostov region
1 689,5 1 058,3 19 550,4 19 636,1 56,60 230 High
CJSC METROVAGONMASH
INN 5029006702 Moscow region
1 004,3 2 367,6 15 933,6 26 327,9 64,90 232 High
LLC STM-SERVICE
INN 6672337623 Sverdlovsk region
74,6 152,3 15 376,8 1 870,6 84,84 254 High
CJSC HOLDING COMPANY KOLOMENSKIY PLANT
INN 5022013517 Moscow region
513,5 460,7 13 413,1 14 234,6 85,95 234 High
LLC URAL LOCOMOTIVE
INN 6606033929 Sverdlovsk region
-219,9 378,3 23 135,4 28 291,8 96,47 252 High
CJSC Tikhvin Freight Car Building Plant
INN 4715019631 Leningrad region
-2 942,6 2 639,0 30 816,1 41 780,3 108,25 258 High
PJSC Tver Wagon-Building Plant
INN 6902008908 Tver region
52,2 -199,4 14 907,5 17 670,1 122,85 298 High
JSC ZHELDORREMMASH
INN 7715729877 Moscow
-1 044,5 103,4 30 464,8 32 703,8 129,64 274 High
CJSC Kaluga Plant Remputmash
INN 4029032450 Kaluga region
161,3 127,3 22 692,4 22 612,9 217,82 258 High
Total for TOP-10 4,8 6 709,1 206 882,4 244 428,5    
Average value for TOP-10 companies 0,5 670,9 20 688,2 24 442,9 101,99  
Average value for industry -19,0 n/d 645,6 n/d 183,68  

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)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 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.