ТОP-10 of household appliances wholesalers by return on assets ratio

ranking 31/03/2021

Information agency Credinform has prepared a ranking of Russian household appliances wholesalers. The largest enterprises (TOP-10 and TOP-100) in terms of annual revenue were selected according to the data from the Statistical Register and the Federal Tax Service for the available periods (2017-2019). Then the companies were ranged by return on assets ratio (Table 1). The company selection and analysis were based on the data from the Information and Analytical system Globas.

Return on assets (%) is calculated as the relation of the sum of net profit and interest payable to the total assets value of a company and shows how many monetary units of net profit are earned by every unit of total assets.

The ratio characterizes the effectiveness of using by the company of its resources. The higher is the ratio value, the more effective is business, that is the higher the return per every monetary unit invested in assets.

However, it is necessary to take into account that the book value of assets may not correspond to their current market value. For example, under the influence of inflation, the book value of fixed assets will increasingly be underestimated in time, that will lead to an overestimation of the return on assets. Thus, it is necessary to take into account not only the structure, but also the age of the assets.

It should be also taken into account the dynamics of this indicator. Its consistent decline indicates a drop in asset utilization.

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 by the experts of Information Agency Credinform, taking into account the actual situation of the economy as a whole and the industries. In 2019 the average industry practical value of return on assets ratio for the household appliances wholesalers was from 0 to 11,11 %%.

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

Table 1. Net profit, revenue, return on assets, solvency index Globas of home appliance wholesalers (ТОP-10)
Name, INN, region Revenue, million RUB Net profit (loss), million RUB Return on assets,% Solvency index Globas
2018 2019 2018 2019 2018 2019
1 2 3 4 5 6 7 8
INN 7804159731 Moscow
up13 115 up14 999 up1 452 up1 591 up25,19 down22,72 218 Strong
INN 7704216778 Moscow
up27 182 up34 767 up1 267 down861 up13,76 up9,42 258 Medium
INN 7717654289 Moscow
up27 354 up28 690 up1 269 down517 up8,17 down4,03 246 Strong
INN 7726600963 Moscow
down16 998 up22 139 down-183 up298 down-1,88 up3,30 260 Medium
INN 7719269331 Moscow region
up132 485 up169 047 up2 394 down1 556 up6,70 down2,81 195 High
INN 7727696432 Moscow
down14 942 up17 244 up285 down186 up4,24 down2,33 233 Strong
INN 7703001265 Moscow
up37 394 down30 475 up286 down182 up2,34 down1,67 228 Strong
INN 7704844420 Tver region
up46 165 down45 552 up615 down161 up4,53 down1,25 304 Adequate
INN 5047067909 Moscow region
up18 747 down14 457 up58 down53 down0,92 up1,10 251 Medium
LLC RBT Company
INN 7452030451 Chelyabinsk region
up16 546 up17 150 up70 down32 up1,03 down0,45 214 Strong
Average value for TOP-10 companies up35 093 up39 452 up751 down544 up6,50 down4,91  
Average value for TOP-1000 companies up1 038 down1 034 up25 down20 down8,83 down8,18  
Average industry value up120 up157 down-1 up5 down-2,39 up5,92  

вверх growth of indicator in comparison with prior period, вниз decline of indicator in comparison with prior period

The return on assets value of all TOP-10 companies is in the range of average industry practical value.

The average value of return on assets for TOP-10 companies is lower than TOP-1000 and average industry value: in 2019, three companies improved the results. At the same time, only one company showed the decrease in revenue and two companies demonstrated the increase in net profit.

In general, during the last 10 years, the average industry indicators of return on assets ratio were within the practical value. (Picture 1). The companies showed sufficient efficiency in use of their resources, with exception of 2018.

Picture 1. Change in average industry values of return on assets of household appliances wholesalers in 2010 – 2019 Picture 1. Change in average industry values of return on assets of household appliances wholesalers in 2010 – 2019