Liabilities to assets ratio of TOP 10 shipbuilding enterprises of Saint Petersburg

ranking 17/11/2021

Saint Petersburg is one of the largest shipbuilding centers in Russia, where more than 50 ships and vessels were built in October 2021. By 2025, 4 submarines, 22 ships and vessels for military purposes, 3 nuclear icebreakers, 1 scientific and 2 passenger ships will be delivered to customers. However, the analysis of liabilities to assets ratio of the largest shipbuilding enterprises of the city indicates their excessive debt load in 2019-2020.

Information agency Credinform has selected for this ranking in Globas the largest enterprises of Saint Petersburg engaged in construction of ships, vessels, floating structures, pleasure and sports boats. Companies with the largest volume of annual revenue (TOP 10) were selected for the ranking, according to the data from the Statistical Register and the Federal Tax Service for the latest available periods (2018 - 2020). They were ranked by liabilities to assets ratio (Table 1).

Liabilities to assets ratio shows the proportion of assets financed by the company through loans. The standard value for this indicator is from 0.2 to 0.5.

Sales revenue and net income show the scale and efficiency of a company’s business and liabilities to assets ratio indicates the risk of insolvency.

Exceeding the upper standard value indicates excessive debt load, which can stimulate development, but negatively affects the stability of the financial position. The value of the indicator below the standard one may indicate a conservative strategy of financial management and excessive caution in attracting new borrowed funds.

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, liabilities to assets ratio, Solvency index Globas of the shipbuilding enterprises of Saint Petersburg (TOP 10)
Name, INN Revenue, million RUB Net profit (loss), million RUB Liabilities to assets ratio.(x), from 0,2 to 0,5 Solvency index Globas
2019 2020 2019 2020 2019 2020
1 2 3 4 5 6 7 8
INN 7812018283
up3 594,1 down3 574,6 down157,1 up181,2 up0,45 down0,60 168 Superior
INN 7838395215
up68 832,0 up85 665,0 up509,7 up1 501,2 down0,74 up0,74 223 Strong
INN 7839395419
up35 011,1 up39 156,6 down1 774,0 up3 494,6 down0,70 down0,754 204 Strong
INN 7801304758
up723,1 up1 009,4 down52,0 down4,5 up0,87 up0,87 273 Medium
INN 7817315385
down10 459,0 up11 137,5 up952,4 down189,3 up0,86 down0,89 189 High
INN 7813046950
down6 536,3 down6 366,7 down2,7 up262,0 down0,87 down0,91 204 Strong
INN 7802567252
down261,2 up682,5 down7,9 down1,3 up0,96 up0,95 292 Medium
INN 7728859070
up927,8 down674,4 up155,6 down27,0 up0,69 down0,95 270 Medium
INN 7805034277
up20 736,6 down14 929,5 up-534,5 up173,4 up0,99 up0,99 240 Strong
INN 7830001910
down20 654,3 down18 929,8 down-6 444,2 down-7 878,8 down1,03 down1,09 293 Medium
Average value for TOP 10 up16 773,6 up18 212,6 down-336,7 up-204,4 down0,82 down0,87  
Average value for TOP 100 in Saint Petersburg down1 737,9 up1 889,0 down-31,2 up-18,2 down0,76 up0,75
Industry average value down386,6 up427,1 down-10,2 up-9,4 down0,86 down0,88

вверх growth of indicator to the previous period, вниз fall of indicator to the previous period

The average 2020 value of liabilities to assets ratio of TOP 10 and TOP 100 was above the standard one. Six of TOP 10 companies had decrease in 2020, while in 2019 the decrease was recorded for four companies.

Five of ten companies gained revenue and/or net profit in 2020. At the same time, the increase in the average revenue of TOP 10 and TOP 100 amounted to almost 9% each; the industry average value grew by more than 10%. The average loss of TOP 10 decreased by 39%, and by 42% for TOP 100. On average in the industry, the loss was reduced by almost 8%.

The decrease in average revenue was 10%, and there was 33% fall of the industry average value.

The average profit of TOP 10 have increased almost 9%. However, on average in the industry, the decrease was recorded by almost 26%.

The industry average values of liabilities to assets ratio have raised ones during the past 5 years. The highest value was recorded in 2017 and the lowest one was in 2020 (Picture 1).

Picture 1. Change in the average values of liabilities to assets ratio in shipbuilding in 2016 - 2020 Picture 1. Change in the average values of liabilities to assets ratio in shipbuilding in 2016 - 2020