Credit protection of the largest Russian manufacturers of mineral water
Information agency Credinform prepared a ranking of the largest Russian manufacturers of mineral water.
The TOP-10 list of enterprises was drawn up for the ranking on the annual volume of revenue for the latest available accounting period available in the Statistical Register (for the year 2014); following data were calculated: the dynamics of revenue related to the previous period and credit protection ratio (s. Table 1).
Credit protection ratio (x) is the relation of pre-tax earnings and interest on loans to the amount of interest due. It characterizes the degree of protection of creditors against non-payment of interests for a granted credit and shows how many times during the reporting period a company earned money to pay the interests on loans. The recommended value is: > 1.
Thus, if the ratio is less than 1, it testifies that a company has no possibility to repay all credit obligations simultaneously. This, in its turn, may lead to financial instability of business in today's difficult economic conditions, especially during the fall in effective demand of the population.
If there is no value of the considered indicator – there are no borrowings in the report of an enterprise, and, consequently, no interests payable to creditors. This in itself can be a positive factor, but it requires access to the capital market for a successful business, market retention, introduction of innovation solutions. Therefore, the task of financial management is the observance of a reasonable balance between development and its financial well-being.
For getting of more comprehensive and fair picture of financial standing of an enterprise it is necessary to pay attention not only to average indicator values in industry, but also to all presented combination of financial indicators and ratios of a company.
|№||Name||Region||Revenue for 2014, in ths RUB||Revenue, dynamics 2014 - 2013, %%||Credit protection ratio||Solvency index GLOBAS -i®|
|1||PK LIDER LLC
|Moscow region||1 662 090||136||10,73||170 the highest|
|2||EDELVEIS L LLC
|Lipetsk region||965 784||145||3,03||224 high|
|3||AKVALAIN CJSC NJSC
|Karachay-Cherkess Republic||590 798||134||2,74||239 high|
|4||FONTE AKVA LLC
|Moscow region||1 098 284||86||1,84||287 high|
|5||KOMPANIYA CHISTAYA VODA LLC
|Sverdlovsk region||634 167||81||1,70||213 high|
|6||NARZAN OJSC PJSC
|Stavropol Territory||1 877 356||104||1,41||238 high|
|7||FIRMA MERKURY LLC
|Karachay-Cherkess Republic||2 073 999||109||1,39||211 high|
|8||KAVMINVODY JSC NJSC
|Stavropol Territory||841 976||110||168 the highest|
|9||ZAVOD MINERALNYKH VOD OKTYABR-A LLC
|Stavropol Territory||586 137||547||223 high|
|10||VISMA CJSC NJSC
|Karachay-Cherkess Republic||996 857||83||0,48||288 high|
The value of the credit protection ratio of the largest Russian manufacturers of mineral water (TOP-10) ranges from 10,3 (PK LIDER LLC) to 0,48 (VISMA CJSC NJSC). There are no indicator values by AVMINVODY JSC NJSC and ZAVOD MINERALNYKH VOD OKTYABR-A LLC.
Picture 1. Revenue and credit protection ratio of the largest Russian manufacturers of mineral water (TOP-10)
The annual revenue of the companies from the Top-10 list amounted to 11,3 bln RUB at year-end 2014, that is by 11% higher than the total figure of the same producers for 2013. Three enterprises from Top-10 reduced the amount of revenue in 2014 in regard to 2013. At the same time, ZAVOD MINERALNYKH VOD OKTYABR-A LLC demonstrated a quite impressive dynamics of the revenue with its increasing by more than 5 times in 2014 in regard to 2013.
The industry average value of the credit protection ratio in 2013 was 2,08, and in 2014 had already a negative value – 0,73. Thus, in 2014 all TOP-10 enterprises had the value of this indicator above the industry average. Only VISMA NJSC CJSC had the ratio value less than 1 in 2014.
All participants of the TOP-10 list got high and the highest solvency index GLOBAS-i®. It testifies that all enterprises can pay off their debts in time and fully, while risk of default is minimal.