Solvency ratio of the largest Russian travel companies

ranking 28/11/2018

Information agency Credinform represents the ranking of the largest Russian travel companies. The enterprises with the largest volume of annual revenue (TOP-10) involved in tourist activity were selected for the ranking, according to the data from the Statistical Register for the latest available periods (for 2014 – 2017). Then they were ranked by solvency ratio (Table 1). The analysis was made on the basis of the data of the Information and Analytical system Globas.

Solvency ratio (х) is calculated as the relation of the amount of equity capital to balance sum and shows company's dependence on external loans.

Recommended value is: >0,5. The ratio value below the minimum recommended limit means a dependence on external sources of financing that may adversely impact liquidity and lead to an unstable financial situation of the company in case of a worsening economic situation. The experts of the Information agency Credinform,taking into account the actual situation both in the economy as a whole and in the sectors, has developed and implemented in the Information and Analytical system Globas the calculation of practical values of financial ratios that can be recognized as normal for a particular industry. For travel companies industry average practical values of the solvency ratio made from 0,00 up to 1,00 in 2017 (Table 1).

For getting of the most comprehensive and fair picture of the financial standing of an enterprise it is necessary to pay attention to all combination of indicators and financial ratios.

Table 1. Net profit, revenue, solvency ratio, solvency index Globas of the largest Russian travel companies (TOP-10)
Name, INN, region, type of activity Sales revenue, bln RUB Net profit (loss), bln RUB Solvency index (x), >0,5 Solvency index Globas
2016 2017 2016 2017 2016 2017
1 2 3 4 5 6 7 8
VODOHOD LLC
INN 7707511820 Moscow
Activity of travel agencies and tour operators
up3,554 up3,889 up0,416 down0,252 up0,71 up0,72 192 High
Meridian Company Limited
INN 5042054053 Moscow region
Activity of travel agencies
up2,044 down1,891 down0,002 down0,002 up0,07 up0,43 224 Strong
LLC Internet Travel
INN 7705859041 Moscow
Activity of travel agencies
down1,213 up1,233 up0,208 down-0,051 down0,41 down0,33 279 Medium
Club Med Russia LLC
INN 7705549346 Moscow
Activity of travel agencies
up1,085 up1,337 down0,050 up0,064 up0,17 up0,23 254 Medium
CITY BOOKING & TRAVEL CENTRE, TRADING HOUSE, LLC
INN 5003103814 Moscow region
Activity of travel agencies
up0,769 up1,059 up0,012 down0,010 down0,18 up0,22 243 Strong
AEROKLUB TUR LLC
INN 7702520780 Moscow
Activity of travel agencies
up1,070 up1,121 up0,014 up0,019 down0,19 down0,17 209 Strong
AEROCLUB LLC
INN 7729096230 Moscow
Other reservation services and related activities
up2,090 up2,408 up0,022 up0,028 down0,14 up0,14 215 Strong
S 7 TRAVEL RETAIL LLC
INN 7701607660 Moscow
Activity of travel agencies
up1,963 up2,311 up0,253 up0,379 up0,09 up0,12 193 High
Hotelbook-Service LLC
INN 7709878038 Moscow
Activity for the provision of travel services related to reservation
up0,805 up1,064 up0,002 down0,002 up0,006 down0,01 227 Strong
ACADEMSERVICE LTD
INN 5024053441 Moscow region
Activity of travel agencies
up4,728 up5,098 up0,000 up0,005 up0,01 up0,01 197 High
Total by TOP-10 companies up19,321 up21,412 up0,980 down0,710    
Average value by TOP-10 companies up1,932 up2,141 up0,098 down0,071 down0,20 up0,24
Industry average value up0,007 up0,009 up0,00031 down0,00022 down0,07 up0,14

Up — improvement of the indicator to the previous period, Up — decline in the indicator to the previous period.

The average value of the solvency ratio of TOP-10 enterprises is above the industry average indicator and fits within the range of practical values. In 2017, seven companies from the TOP-10 list improved indicators compared with the previous period.

Picture 1. Solvency ratio and revenue of the largest Russian travel companies (TOP-10) Picture 1. Solvency ratio and revenue of the largest Russian travel companies (TOP-10)

For ten years, the industry average indicators of the solvency ratio tend to decrease (Picture 2).

Picture 2. Change in industry average values of the solvency ratio of Russian travel companies in 2008 – 2017 Picture 2. Change in industry average values of the solvency ratio of Russian travel companies in 2008 – 2017