Solvency ratio of the largest Russian wood processing factories

ranking 31/01/2019

Information agency Credinform represents a ranking of the largest Russian wood processing factories. The enterprises with the largest volume of annual revenue (TOP-10) were selected for the ranking, according to the data from the Statistical Register for the latest available periods (2015 – 2017). Then they were ranked by solvency ratio (Table 1). The analysis is based on the data of the Information and Analytical system Globas.

Solvency ratio (х) is calculated as the relation of the amount of equity capital to balance sum and indicates the reliance on external borrowins. The recommended value is >0,5.

The value below the minimum recommended limit indicates a heavy reliance on external sources of financing that may adversely impact liquidity and lead to an unstable financial situation of the company in case of worsening economic situation.

The experts of the Information agency Credinform, taking into account the actual situation both in the economy as a whole and in the sectors, has developed and implemented in the Information and Analytical system Globas the calculation of practical values of financial ratios that can be recognized as normal for a particular industry. For wood processing factories, the practical value of the solvency ratio is from 0,01 to 0,94 in 2017.

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, solvency ratio, solvency index Globas of the largest Russian wood processing factories (TOP-10)
Name, INN, region, business scope Revenue, bln RUB Net profit (loss), bln RUB Solvency ratio (x), >0,5 Solvency index Globas
2016 2017 2016 2017 2016 2017
1 2 3 4 5 6 7 8
SYKTYVKAR PLYWOOD MILL LIMITED
INN 1121009024 Republic of Komi
Manufacture of plywood, wood veneered panels and similar laminated materials, wood-based panels of wood and other woody materials
down9,72 up10,30 down1,85 up2,06 up0,86 up0,89 185 High
KRONOSPAN LLC
INN 5011021227 Moscow region
Manufacture of plywood, wood veneered panels and similar laminated materials, wood-based panels of wood and other woody materials
up19,98 up20,09 up2,95 down1,59 up0,80 up0,87 205 Strong
JSC SVEZA KOSTROMA
INN 4401006864 Kostroma region
Manufacture of plywood, wood veneered panels and similar laminated materials, wood-based panels of wood and other woody materials
up7,48 down7,05 down1,31 down1,06 down0,88 down0,85 213 Strong
LLC SWISS KRONO
INN 4407006010 Kostroma region
Manufacture of plywood, wood veneered panels and similar laminated materials, wood-based panels of wood and other woody materials
up12,76 down11,73 up2,31 down1,18 up0,62 up0,67 192 High
EGGER DREVPRODUKT GAGARIN LLC
INN 6723019741 Smolensk region
Manufacture of plywood, wood veneered panels and similar laminated materials, wood-based panels of wood and other woody materials
up8,22 up11,85 down-1,05 down-3,01 up0,46 up0,65 213 Strong
JSC TERNEYLES
INN 2528000813 Primorye territory
Production of veneer, plywood, wooden plates and panels
up8,16 down7,36 up1,81 down0,91 up0,46 up0,58 180 High
JSC SAWMILL 25
INN 2928001265 Arkhangelsk region
Production of lumber, except profiled, with a thickness of more than 6 mm; production of untreated wooden railroad and tram sleepers
up6,51 up7,52 up0,78 down0,62 down0,43 up0,45 203 Strong
LLC ILIM TIMBER INDUSTRY
INN 7838407799 Saint Petersburg
Production of lumber, except profiled, with a thickness of more than 6 mm; production of untreated wooden railroad and tram sleepers
up6,61 up8,84 up0,38 down0,22 up0,12 up0,14 244 Strong
KASTAMONU INTEGRATED WOOD INDUSTRY LLC
INN 1646027030 Republic of Tatarstan
Manufacture of wood products, suber, straw and materials for weaving
up9,37 up12,05 up6,10 down-0,31 up0,11 up0,09 302 Adequate
JSC SAWING AND WOODWORKING ENTERPRISE IGIRMA
INN 3811113307 Irkutsk region
Sawing and planing of wood
In process of being wound up since 21.05.2018
up6,36 up7,11 up1,47 down-0,21 up-0,35 down-0,45 600 Insufficient
Total for TOP-10 companies up95,19 up103,91 up17,92 down4,11    
Average value for TOP-10 companies up9,52 up10,39 up1,79 down0,41 up0,44 up0,47
Industry average value up0,04 up0,06 up0,0044 down-0,0005 up0,18 up0,18

Up — growth of indicator to the previous period, Up — decrease of indicator to the previous period.

The average indicator of solvency ratio of TOP-10 companies is within the practical value, above the average and below the recommended one. In 2017, eight companies of TOP-10 increased their figures in comparison with the previous period.

Picture 1. Solvency ratio and revenue of the largest Russian wood processing factories (TOP-10) Picture 1. Solvency ratio and revenue of the largest Russian wood processing factories (TOP-10)

Over the past 10 years, the industry average values of solvency ratio have a trend to decrease (Picture 2).

Picture 2. Change in the industry average values of solvency ratio of the largest Russian wood processing factories in 2008 – 2017 Picture 2. Change in the industry average values of solvency ratio of the largest Russian wood processing factories in 2008 – 2017