Trends in the manufacture of accumulators

Information agency Credinform represents an overview of activity trends of the largest Russian manufacturers of accumulators.

Manufacturing companies with the largest volume of annual revenue (TOP-10 and TOP-50) were selected for the analysis, according to the data from the Statistical Register for the latest available periods (for 2016 - 2018). The analysis was made on the basis of the data of the Information and Analytical system Globas.

Net assets value is an indicator, reflecting the real value of company’s property, is calculated annually as the difference between assets on the enterprise balance and its debt obligations. The indicator of net assets is considered negative (insufficiency of property), if company’s debt exceeds the value of its property.

The largest company in terms of net assets is TYUMEN BATTERY FACTORY NJSC, INN 7204001630. In 2018, its net assets amounted to more than 3,3 billion rubles.

The smallest amount of net assets in the TOP-50 list was hold by Zavod AIT PJSC, INN 6451104116 (process of being wound up, 12.04.2018). The insufficiency of property of this company in 2018 was expressed as a negative value of -881 million rubles.

The average values of net assets tend to decrease over the ten-year period (Picture 1).

Picture 1. Change in the industry average indicators of the net asset value of the manufacturers of accumulators in 2009 – 2018

The shares of TOP-1000 enterprises with insufficiency of assets have a tendency to increase in the last five years (Picture 2).

Picture 2. Shares of enterprises with negative values of net assets in TOP-50 in 2014 – 2018

Sales revenue
The revenue volume of 10 leading companies of the industry made almost 71% of the total revenue of TOP-50 in 2018 (Picture 3). It points to a relatively high level of monopolization in the industry.

Picture 3. Shares of participation of TOP-10 companies in the total revenue of TOP-50 enterprises for 2018

In general, there is an increase in industry average revenue over the ten-year period (Picture 4).

Picture 4. Change in the industry average revenue of the manufacturers of accumulators in 2009 – 2018

Profit and loss
The largest company of the industry in terms of net profit value is ENERGIYA NJSC, INN 4821000142. The company's profit amounted to almost 450 million rubles in 2018.

Industry average values of net profit trend to decrease over the past ten years (Picture 5).

Picture 5. Change in the industry average indicators of net profit of the manufacturers of accumulators in 2009 – 2018

Average values of net profit’s indicators of TOP-50 companies are at a stable level over a five-year period, at the same time the average value of net loss increases. (Picture 6).

Picture 6. Change in the industry average values of indicators of net profit and net loss of TOP-50 in 2014 – 2018

Key financial ratios
Over the ten-year period the average indicators of the total liquidity ratio of TOP-1000 enterprises were mainly in the range of recommended values - from 1,0 up to 2,0, with a tendency to decrease (Picture 7).

The total liquidity ratio (the relation of the amount of current assets to short-term liabilities) shows the sufficiency of company’s funds for repayment of its short-term liabilities.

Picture 7. Change in the industry average values of the total liquidity ratio of the manufacturers of accumulators in 2009 – 2018

The average industry values of the return on investment ratio have a tendency to decrease over the course of ten years (Picture 8).

The ratio is calculated as the relation of net profit to the sum of own capital and long-term liabilities and demonstrates the return on the equity of own capital involved in the commercial activity and the long-term borrowed funds of an organization.

Picture 8. Change in the industry average values of the return on investment ratio of the manufacturers of accumulators in 2009 – 2018

Asset turnover ratio is calculated as the relation of sales proceeds to the average value of total assets for a period and characterizes the efficiency of use of all available resources, regardless of the sources of their attraction. The ratio shows how many times a year a complete cycle of production and circulation is made, yielding profit.

This ratio of business activity showed a tendency to increase over the ten-year period (Picture 9).

Picture 9. Change in the industry average values of the asset turnover ratio of the manufacturers of accumulators in 2009 – 2018

Small business
60% of TOP-50 companies are registered in the Register of small and medium-sized enterprises of the Federal Tax Service of the RF. At the same time, their share in the total revenue amounted to almost 16% in 2018, that is lower than the national average (Picture 10).

Picture 10. Shares of proceeds of small and medium-sized enterprises in TOP-50 companies

Main regions of activity
The TOP-50 companies are distributed unequal across Russia and registered in 20 regions. More than 64% of their revenue for 2018 are concentrated in St. Petersburg, Kursk, Tyumen and Samara regions (Picture 11).

Picture 11. Distribution of the revenue of TOP-50 companies by Russian regions in 2018

Financial position score
An assessment of the financial position of TOP-50 companies shows that the financial position of most of them is above average (Picture 12).

Picture 12. Distribution of TOP-50 companies by financial position score

Solvency index Globas
The vast majority of TOP-50 companies got Superior/High or Strong/Medium Solvency index Globas, that points to their ability to pay off their debts in time and fully (Picture 13).

Picture 13. Distribution of TOP-50 companies by solvency index Globas

Industrial production index
According to the Federal State Statistics Service, there is a tendency towards an increase in indicators of the industrial production index in the field of the industrial production of accumulators during 2018 - 2019 (Picture 14). At the same time, the average index from month to month was 102,5%.

Picture 14. Industrial production index in 2018 – 2019, (%)

According to the same information, the share of the manufacturers of accumulators in the revenue volume from the sale of goods, products, works, services made 0,0004% countrywide for 2018.

Conclusion
A comprehensive assessment of activity of the largest Russian manufacturers of accumulators, taking into account the main indices, financial indicators and ratios, points to the prevalence of negative trends in the industry (Table 1).

Table 1. Positive and negative trends, evaluation factors of the industry

Trends and evaluation factors	Specific share of factor, %
Rate of growth (decline) in the average size of net assets	-10
Increase / decrease in the share of enterprises with negative values of net assets	-10
Level of competition	-10
Rate of growth (decline) in the average size of revenue	10
Rate of growth (decline) in the average size of profit (loss)	-10
Growth / decline in average values of net profit of TOP-50 companies	5
Growth / decline in average values of net loss of TOP-50 companies	-10
Increase / decrease in average values of total liquidity ratio	-5
Increase / decrease in average values of return on investment ratio	-10
Increase / decrease in average values of asset turnover ratio, times	10
Share of small and medium-sized enterprises in the industry in terms of revenue being more than 22%	-10
Regional concentration	-5
Financial position (the largest share)	10
Solvency index Globas (the largest share)	10
Industrial production index	10
Average value of factors	-1,7

positive trend (factor), negative trend (factor).