The largest Russian IT-companies in terms of current liquidity ratio

ranking 22/06/2016

Information Agency Credinform presents the ranking of Russian IT-companies. The largest companies (TOP-10), engaged in using of computing machinery and information technologies, in terms of revenue were selected according to the data from the Statistical Register for the latest available period (2014). The companies were ranged by current liquidity ratio (Table 1).

Current liquidity ratio (х) is a ratio of total working capital to short-term liabilities, it shows the funds sufficiency for repayment of debts.

The recommended value is from 1,0 to 2,0. Ratio value less than 1 demonstrates excess of short-term liabilities over current working capital.

For the most full and fair opinion about the company’s financial position, not only compliance with standard values should be taken into account, but also the whole set of financial indicators and ratios.

Table 1. Net profit, revenue, current liquidity ratio, solvency index Globas-i of the Russian largest IT-companies (TOP-10)
Name, INN, RegionNet profit of 2014, mln RUBRevenue of 2014, mln RUBRevenue of 2014 to 2013 %Current liquidity ratio, (х)Solvency index Globas-i
LLC YANDEX
INN 7736207543
Moscow
18 720,8 51 506,0 127 3,30 172 The highest
LLC MAIL.RU
INN 7743001840
Moscow
3 637,4 13 385,7 108 2,34 204 High
LLC SAP CIS
INN 7705058323
Moscow
863,5 19 462,0 99 1,45 253 High
JSC I-TECO
INN 7704160892
Moscow
533,3 14 836,1 90 1,24 200 High
JSC CROC INCORPORATED
INN 7701004101
Moscow
502,0 22 455,1 95 1,09 238 High
LLC DISCOM
INN 7705878220
Moscow
21,3 19 982,2 117 1,03 249 High
JSC SOFTLINE TRADE
INN 7736227885
Moscow
97,1 21 096,2 123 1,02 191 The highest
LLC RN-INFORM
INN 7725624249
Moscow
1 332,6 16 946,2 145 1,02 231 High
LLC LUKOIL INFORM
INN 7705514400
Moscow
58,3 19 728,9 106 0,91 262 High
JSC NVISION GROUP
INN 7703282175
Moscow
-1 612,8 14 262,1 75 0,74 300 Satisfactory

Values of the current liquidity ratio for the TOP-10 companies vary from 3,30 to 0,74. The average value of the current liquidity ratio of the 10 largest IT-companies in 2014 was 1,41 with average value 1,81 for the top-100 companies.

First two places of the ranking take LLC YANDEX and LLC MAIL.RU with current liquidity ratios exceeding the upper limit of recommended value, while working capital of the enterprises significantly exceeds short-term liabilities.

Ratios of LLC LUKOIL-INFORM and JSC NVISION GROUP are below the recommended values.

The TOP-10 companies except for JSC NVISION GROUP, ended 2014 with profit, at that LLC SAP CIS, I-TECO, JSC CROC INCORPORATED and LLC LUKOIL INFORM have value decrease in relation to the previous period.

JSC NVISION GROUP has got satisfactory solvency index Globas-i due to the available information of its participation as a defendant in debt collection arbitration proceedings, cases оf delay payment and loss in financial structure. The solvency rate of the company does not guarantee full and well-timed discharge of liabilities.

The rest 9 companies of the TOP-10 list have got the highest and high solvency index Globas-i that characterizes them as financially stable.

Picture 1. Revenue and current liquidity ratio for 2014 of the 10 largest IT-companies (TOP-10)

Picture 1. Revenue and current liquidity ratio for 2014 of the 10 largest IT-companies

Following the results of 2014, the annual total revenue of the TOP-10 companies was 84,3 bln RUB, that is almost 20% of the total revenue of the companies from the corresponding TOP-100 list. This value has 9% grown related to 2013.

Therefore, inspite of difficult economic conditions, the industry demonstrates positive dynamics. The same information confirm data of the Federal State Statistics Service (Rosstat) showing dynamics in working capital of the companies engaged in using of computing machinery and information technologies (Picture 2 and Table 2).

Picture 2. Working capital according to the type of activity (Annual value, bln RUB)

 Working capital according to the type of activity

The largest working capital have IT-companies dealing with software protection and consultancy in this sphere.

Table 2. Working capital according to the type of activity (Annual value, bln RUB)
 201020112012201320142014 to 2010, %
Software protection and consultancy in this sphere 89,6 103,7 161,0 235,6 275,0 307
Other activities connected with using of computing machinery and information technologies 51,9 60,3 124,9 132,1 170,9 329
Activities connected with development and usage of data bases and information resources, including Internet resources 63,8 50,4 79,8 105,7 123,4 193
Consultancy connected with hardware of computing machinery 19,9 56,1 32,0 45,2 63,0 317
Maintenance and repair of office and computer machinery 15,1 15,9 20,0 34,6 45,4 301
Data processing 13,8 20,0 22,4 31,6 41,7 302

The highest rate of working capital have the IT-companies carrying on other activities connected with using of computing machinery and information technologies.

High business concentration in Moscow – the largest financial center in the country – is typical for IT-companies. This fact is confirmed by the data from the Information and analytical system Globas-i on the regional distribution of 100 largest registered companies of the industry in terms of 2014 revenue (TOP-5 Regions):

RegionNumber of registered companies
Moscow 74
Saint-Petersburg 6
Moscow region 5
The Republic of Tatarstan 3
Rostov region 2