Solvency ratio of the largest Russian meat products manufacturers

ranking 04/06/2018

Information agency Credinform has prepared a ranking of the largest Russian manufacturers of packaging. The companies with the largest volume of annual revenue (TOP-10) have been selected for the ranking, according to the data from the Statistical Register for the latest available accounting periods (2014 — 2016). Then they have been ranked by solvency ratio (Table 1). The analysis was based on the data from the Information and Analytical system Globas.

Solvency ratio (x) is a ratio of shareholders’ equity to total assets and shows the dependence of the company on external loans. Its recommended value: >0,5. A value less than a minimum one is indicative of a dependence on external sources of funds, which may result in a liquidity crisis, unstable financial standing in the event of economic downturn.

A calculation of practical values of financial ratios, 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 the Information Agency Credinform, having taken into account the current situation in the economy as a whole and in the industries.

The practical value of solvency ratio of meat products manufacturers amounted from 0,01 to 0,85 in 2016.

The whole set of indicators and financial ratios is to be considered in order to get a full and comprehensive insight into a company’s financial standing.

Table 1. Net profit, revenue, solvency ratio, solvency index Globas of the largest Russian meat products manufacturers (TOP-10)
Name, INN, region Revenue, million RUB Net profit, million RUB Solvency ratio (x) Solvency index Globas
2015 2016 2015 2016 2015 2016
1 2 3 4 5 6 7 8
Ostankinsky Meat-Processing Plant PJSC
INN 7715034360
Moscow
36 764 Up 39 569 812 Up 928 0,85 Up 0,93 216 Strong
ITERA NJSC
INN 4003037662
Kaluga region
9 619 Up 11 171 485 Up 803 0,77 Up 0,87 208 Strong
Mikoyanovsky Meat Factory NJSC
INN 7722169626
Moscow
12 301 Up 12 454 135 Up 155 0,40 Up 0,46 173 High
Starodvorskie sausages NJSC
INN 3328426780
Vladimir region
15 197 Up 16 507 644 Up 307 0,25 0,25 231 Strong
Atyashevsky Meat Processing Plant LLC
INN 1303066789
Republic of Mordovia
11 503 Up 12 556 149 Up 250 0,14 Up 0,16 214 Strong
Poultry Factory LLC
INN 2631029799
Stavropol territory
11 733 Up 11 613 69 Up 95 0,09 Up 0,10 242 Strong
Agro-Belogorie Meat Processing Plant LLC
INN 3123183960
Belgorod region
17 480 Up 15 675 -11 Up 55 0,01 Up 0,02 248 Strong
Belaya Ptica-Kursk LLC
INN 4604006115
Kursk region
10 696 Up 11 424 -27 Up 29 0,00 Up 0,01 276 Medium
Cherkizovsky Meat Processing Plant NJSC
INN 7718013714
Moscow
29 953 Up 32 430 -881 Up -1 759 0,10 Up -0,08 288 Medium
Velikoluksky Meat Plant PJSC
INN 6025009824
Pskov region
15 737 Up 17 250 -1 105 Up 807 -0,36 Up -0,29 240 Strong
Total for TOP-10 companies 172 998 Up 182 665 2 285 Up 3 686      
Average value for TOP-10 companies 17 300 Up 18 267 229 Up 369 0,23 Up 0,24  
Average industry value 205 Up 211 2 2 0,14 Up 0,21  

Average value of solvency ratio for TOP-10 companies is above the recommended values. Two of TOP-10 companies a solvency ratio above the recommended, and two companies have a negative ratio value.

Picture 1. Solvency ratio and revenue of the largest Russian meat products manufacturers (TOP-10) Picture 1. Solvency ratio and revenue of the largest Russian meat products manufacturers (TOP-10)

Average industry values of solvency ratio tend to decrease within the last decrease (Picture 2). This is indicative of a high dependence of meat processing industry on external loans.

Picture 2. Change in average industry values of solvency ratio of the largest Russian manufacturers of meat products in 2007 — 2016 Picture 2. Change in average industry values of solvency ratio of the largest Russian manufacturers of meat products in 2007 — 2016