Activity trends of the largest companies of real economy sector in East Siberian economic district of Russia
In order to reduce the interregional differences in the level and quality of life of the population, to accelerate economic growth and technological development and to ensure the national security of the country, in February 2019 Russian Government approved the Strategy of Spatial Development of the Russian Federation until 2025. It consists of 12 macro-regions; one of them is East Siberian macro-region, which includes Transbaikal region, Irkutsk region, Krasnoyarsk region, the Republic of Buryatia, Tuva and Khakassia Republic.
Information agency Credinform has prepared a review of activity trends of the largest companies of the real economy sector in East Siberian economic district of Russia. The largest companies (ТОP-1000) in terms of annual revenue were selected according to the data from the Statistical Register for the latest available periods (2013 - 2018). The analysis was based on data of the Information and Analytical system Globas.
The largest company in terms of net assets is JSC Federal Hydro-Generating Company - RusHydro, INN 2460066195, Krasnoyarsk region. In 2018 net assets of the company amounted to 851 billion RUB.
The smallest size of net assets in TOP-1000 had JSC BOGUCHANSK ALUMINIUM SMELTER, INN 2465102746, Krasnoyarsk region. The lack of property of the company in 2018 was expressed in negative terms -41 billion RUB.
For the last five years, the average values of TOP-1000 net assets showed the growing tendency (Picture 1).
For the last five years, the share of ТОP-1000 enterprises with lack of property is growing (Picture 2).
In 2018, the total revenue of 10 largest companies amounted to almost 45% om ТОP-1000 total revenue (Picture 3). This fact testifies the high level of capital concentration.
In general, the growing trend in sales revenue is observed (Picture 4).
Profit and loss
The largest company in terms of net profit is JSC Mining and Metallurgical Company NORILSK NICKEL, INN 8401005730, Krasnoyarsk region. In 2018 the company’s profit amounted to 165 billion RUB.
For the last five years, the average profit values of TOP-1000 show the growing tendency (Picture 5).
Over a five-year period, the average net profit values of ТОP-1000 show the growing tendency, along with this the average net loss is decreasing (Picture 6).
Main financial ratios
For the last five years, the average values of the current liquidity ratio were higher than the recommended values - from 1,0 to 2,0, with growing trend (Picture 7).
For the last three years, the high level of the average values of ROI ratio with growing trend is observed (Picture 8).
For the last five years, this business activity ratio demonstrated the downward trend (Picture 9).
49% of ТОP-1000 companies are registered in the Unified register of small and medium-sized enterprises of the Russian Federal Tax Service. Herein, their share in TOP-1000 total revenue is about 8%, which is significantly lower than the national average value (Picture 10).
Main regions of activity
ТОP-1000 companies are unequally located across the country and registered in 6 regions of Russia. Almost 90% of the largest enterprises in terms of revenue are located in Krasnoyarsk and Irkutsk regions (Picture 11).
Financial position score
An assessment of the financial position of TOP-1000 companies shows that the largest part have above average financial position (Picture 12).
Solvency index Globas
Most of TOP-1000 companies got superior/high or strong/medium Solvency index Globas, this fact shows the ability of the companies to meet their obligations in time and fully (Picture 13).
Industrial production index
According to the Federal Service of State Statistics, there is a downward trend in the industrial production index in East Siberian economic region of Russia during 12 months of 2019 – 2020 (Picture 14). Herewith the average index from month to month amounted to 101%.
According to the same data, the share of enterprises of East Siberian economic region of Russia in the amount of revenue from the sale of goods, works, services made 3,472% countrywide in 2019, that is higher than in 2018 (3,352%).
A complex assessment of activity of the largest companies of real economy sector in East Siberian economic district of Russia, taking into account the main indexes, financial ratios and indicators, demonstrates the presence of positive trends (Table 1).
|Trends and assessment factors||Relative share, %|
|Growth/drawdown rate of average net assets value||10|
|Increase / decrease in the share of enterprises with negative net assets||-10|
|The level of competition / monopolization||-10|
|Growth/drawdown rate of average revenue||10|
|Growth/drawdown rate of average net profit (loss)||10|
|Increase / decrease in average net profit of companies||10|
|Increase / decrease in average net loss of companies||10|
|Increase / decrease in average values of current liquidity ratio||5|
|Increase / decrease in average values of ROI ratio||10|
|Increase / decrease in average values of assets turnover ratio, times||-10|
|Share of small and medium-sized businesses by revenue more than 22%||-10|
|Financial position (the largest share)||10|
|Solvency index Globas (the largest share)||10|
|Industrial production index||-5|
|Dynamics of the share of enterprises in the total amount of revenue countrywide||10|
|Average value of factors||2,5|
favorable trend (factor), unfavorable trend (factor).