Net profit ratio of the largest Russian law consulting firms

ranking 25/04/2016

Information agency Credinform has prepared the ranking of the largest law consulting firms in Russia.

The largest companies by revenue volume for the last available in the Statistical register period (2014) were taken for the ranking. They were ranked in the descending order of net profit ratio.

Net profit ratio (%) is calculated as a ratio of net profit (loss) to revenue from sale. The ratio shows to what extent company’s sales were profitable.

There is no standard indicator value, therefore it is recommended to compare companies belonging to one industry or the change of ratio in the course of time by a specific enterprise. The negative value of indicator gives evidence to availability of the net profit. The bigger indicator value shows the bigger operating efficiency of an enterprise.

In order to get the fullest and fairest view of the company’s situation, it is necessary to pay attention not only to the values of financial ratios, but also to all the submitted financial and nonfinancial data.

Table 1. Revenue, net profit and net profit ratio of the largest law consulting firms (Top-10)
Name, tax number, regionRevenue 2014, th RUBRevenue 2014 to 2013, %Net profit 2014, th RUBNet profit ratio 2013, %Net profit ratio 2014, %Solvency index Globas-i®

CHAMBER OF COMMERCE AND INDUSTRY OF THE RUSSIAN FEDERATION, CCI OF RUSSIA

Tax number 7710026920

Moscow

833 444

163

712 762

192,58

85,52

210

High

LAW FIRM GORODISSKY & PARTNERS LTD

Tax number 7702195561

Moscow

3 060 012

118

1 442 581

16,60

47,14

154

Prime

JOINT STOCK COMPANY MIKHAILOV & PARTNERS.STRATEGIC COMMUNICATION MANAGEMENT

Tax number 7702131247

Moscow

1 076 820

100

252 306

23,67

23,43

236

High

Limited Liability Company McKinsey & Company CIS

Tax number 7710708760

Moscow

6 718 388

110

545 128

14,00

8,11

203

High

NEO CENTRE Joint Stock COMPANY

Tax number 7706793139

Moscow

883 967

121

39 539

16,65

4,47

260

High

JOINT STOCK COMPANY BDO UNICON BUSINESS SOLUTIONS

Tax number 7728641612

Moscow

2 022 606

187

90 092

1,91

4,45

232

High

Oliver Wyman LLCTax number 7709802744

Moscow

974 569

78

23 500

23,47

2,41

241

High

OOO DOLGOVOI TSENTR

Tax number 7708597482

Moscow

505 113

77

3 148

2,50

0,62

288

High

Strategy Partners Group JSC

Tax number 7736612855

Moscow

882 912

118

4 770

5,35

0,54

228

High

IFC Asset Management Company

Tax number 7706250679 Ulyanovsk region

479 745

93

-554 258

2,89

-115,53

306

Satisfactory

Limited Liability Company McKinsey & Company CIS, the Top-10 leader by revenue for 2014, is placed on the fourth spot of the ranking. Share of this company in Top-10 total revenue volume amounted to 39 %. CHAMBER OF COMMERCE AND INDUSTRY OF THE RUSSIAN FEDERATION has the highest net profit ratio 85,52%. The lowest and the most negative value -115,53% belongs to IFC Asset Management Company, which corresponds to the significant loss of the company for 2014. This is the only company in the Top-10 having satisfactory solvency index Globas-i®. It means that the solvency level of the company doesn’t guarantee full and timely repayment of debt obligations. The rest nine companies were given the prime and high solvency index Globas-i®, which gives evidence to their ability to meet debt obligations timely and full.

        Net profit ratio, revenue from sale of the largest law consulting firms Figure 1. Net profit ratio, revenue from sale of the largest law consulting firms (Top-10)

The total revenue volume of the Top-10 companies for 2014 amounted to 17,4 billion RUB, which is by 14% greater than the same indicator for 2013. At the same time the revenue of three companies decreased in comparison with the previous year. Only two companies - LAW FIRM GORODISSKY & PARTNERS LTD and JOINT STOCK COMPANY BDO UNICON BUSINESS SOLUTIONS showed the increase of net profit ratio value in 2014 in relation to 2013. The average indicator value in the Top-10 in 2013-2014 amounted to 19,85% and 14,68% respectively. It reflects the trend of efficiency decline of conducting this business due to total economic situation in the country.

Nine companies from the Top-10 are registered in Moscow. It bears evidence to the high centralization of law consulting services business in one region of the country. It is confirmed by the Federal State Statistics Service of Russia (Rosstat) data by the related type of activity – provision of auditing services (Table 2).

Table 2. Volume of auditing services provided, th RUB
 200920102011201220132014
Russian Federation 23 055 363 23 879 631 23 376 519 25 698 381 27 174 094 27 301 423
Central Federal District (CFD) 16 975 505 18 133 217 18 193 189 20 778 198 22 309 382 22 579 036
Share of CFD in the total volume across Russian Federation, % 74 76 78 81 82 83