TOP-10 of the Russian manufacturers of cement and concrete items by return on equity

ranking 20/01/2020

Information agency Credinform represents a ranking of the largest Russian manufacturers of cement and concrete items. Manufacturers of cement, concrete and building materials 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 (2016 - 2018). They were ranked by return on equity ratio (Table 1). The analysis was based on the data of the Information and Analytical System Globas.

Return on equity (ROE) (%) is net income (annual) to shareholder’s equity.

The ratio determines the efficiency of use of capital invested by the owners of the enterprise, and shows the number of monetary units of net profit earned by each unit invested by the owners of the company.

This indicator is used by investors and business owners to measure their own investments. The higher the ratio, the more profitable is the investment. With negative or zero ROE, it is necessary to analyze the feasibility and effectiveness of investments in the future. In such cases, the ratio value should be compared with other investments.

Too high value of the indicatщк can negatively affect the financial stability of the enterprise, since high profitability also implies higher risks.

To obtain the most complete and objective picture of the financial condition of an enterprise, it is necessary to pay attention to the totality of indicators and financial ratios.

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

Table 1. Net profit, revenue, return on equity ratio, solvency index Globas of the largest Russian manufacturers of cement and concrete items (TOP-10)
Name, INN, region Revenue, billion RUB Net profit (loss), billion RUB Return on equity, % Solvency index Globas
2017 2018 2017 2018 2017 2018
1 2 3 4 5 6 7 8
Mechel Materials OOO
INN 5003064770 Chelyabinsk region
up7,73 up9,88 down0,54 up1,31 up106,65 up141,45 246 Strong
LIMITED LIABILITY COMPANY HENKEL BAUTECHNIK
INN 5022031259 Moscow region
up8,39 up9,45 down1,29 up1,43 down31,09 down28,79 149 Superior
Joint Stock Company BetElTrans
INN 7708669867 Moscow
up21,17 up28,91 up0,90 up0,97 down16,23 up16,58 207 Strong
RENSTROYDETAL LTD.
INN 7806326138 Saint Petersburg
up8,13 up11,32 down0,01 up0,19 down1,20 up16,55 247 Strong
OOO KNAUF GIPS
INN 5024051564 Moscow region
up12,90 up14,16 up2,73 down2,30 up18,19 down13,42 188 High
HEIDELBERGCEMENT RUS LIMITED LIABILITY COMPANY
INN 5036074848 Moscow region
up10,32 up11,31 up-0,29 up0,90 up-4,48 up12,16 242 Strong
JSC SEBRYKOVCEMENT
INN 3437000021 Volgograd region
up10,62 up10,86 up1,85 down1,17 up17,70 down10,44 177 High
SLK CEMENT LIMITED LIABILITY COMPANY
INN 6633028244 Sverdlovsk region
up10,14 up11,22 down1,58 up1,98 down7,74 up8,86 203 Strong
HOLCIM (RUS) CONSTRUCTION MATERIALS LLC
INN 5022050558 Moscow region
up6,84 up15,14 down-1,77 up1,00 down-37,26 up4,11 255 Strong
JSC NOVOROSCEMENT
INN 2315020195 Krasnodar territory
up6,84 up15,14 down down down down4,11 215 Strong
Total for TOP-10 companies up11,01 up13,77 down0,70 up1,13 up15,81 up25,24  
Average value for TOP-10 companies up0,61 up0,65 down0,01 down0,01 down24,46 up162,49  

Up growth of indicator to the previous period, Down decrease of indicator to the previous period

The average indicator of return on sales ratio of TOP-10 companies is below the average of TOP-1000. In 2018, six companies of TOP-10 increased their figures.

Picture 1. Return on equity ratio and revenue of the largest Russian manufacturers of cement and concrete items (TOP-10) Picture 1. Return on equity ratio and revenue of the largest Russian manufacturers of cement and concrete items (TOP-10)

Over the past 5 years, the average values of return on equity ratio of TOP-1000 have a trend to increase (Picture 2).

Picture 2. Change in the industry average values of return on equity ratio of TOP-1000 the largest Russian manufacturers of cement and concrete items in 2014 – 2018 Picture 2. Change in the industry average values of return on equity ratio of TOP-1000 the largest Russian manufacturers of cement and concrete items in 2014 – 2018