Information Agency Credinform has observed the trends in activity for information and communication hardware wholesalers.
The largest enterprises (TOP-10 and TOP-1000) in terms of annual revenue were selected according to the data from the Statistical Register for the latest available periods (2015 and 2016). The analysis was based on data of the Information and Analytical system Globas.
Indicator of real cost of corporate assets, which is annually calculated as the difference between assets of the company and its debt liabilities. Net assets indicator is considered negative (insufficiency of property), if the company’s debts exceed net worth value.
|№ in the TOP-1000 list||Name, INN, region||Net assets value, mln RUB*||Solvency index Globas|
|1.|| LLC APPLE RUS
|1 428,4||9 154,5||15 606,6||196 High|
|2.|| OCS-CENTER LIMITED
|3 367,0||4 707,4||5 103,4||213 Strong|
|3.|| JSC CROC INCORPORATED
|3 253,8||3 285,2||3 367,7||188 High|
|4.|| COMPLETE COMPANY, LTD
|1 206,8||2 349,3||2 556,4||175 High|
|5.|| JSC JET INFOSYSTEMS
|541,9||1 084,3||2 286,9||162 Superior|
|996.|| LLC D-LINK TRADE
|997.|| Technologies, systems and complexes Limited
|998.|| LLC KORDEIL
|999.|| JSC R-STYLE
|1000.|| MARVEL COMPANY LIMITED
(Process of being wound up, 01.06.2017)
*) – growth/decline indicators compared to previous period are marked with green and red filling in columns 4 and 5 respectively.
In 2016 total revenue of 10 leaders of the industry amounted to 54% from TOP-1000 total revenue. This fact shows relatively low level of competition among the industry (Picture 2).
In general, the increasing tendency in sales revenue is observed (Picture 3).
Profit and loss
Profit of 10 leading companies in the industry was 70% from TOP-1000 total profit in 2016 (Picture 4).
For the ten-year period, the average industrial profit values have increasing tendency (Picture 5).
For the three-year period, the average profit indicators of TOP-1000 companies show the growing tendency and the average net loss decreases (Picture 6).
Key financial ratios
For ten years average indicators of the current liquidity ratio in the industry were within the interval of the recommended values – from 1,0 to 2,0 (Picture 7). In general, indicator of the ratio has increasing tendency.
Current 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.
The experts of Information Agency Credinform, having taken into account the current situation in the economy as a whole and in the industries, has been developed and implemented in the Information and Analytical system Globas a calculation of practical values of financial ratios, which might be considered as normal for a certain industry. For the information and communication hardware wholesalers practical value of the current liquidity ratio was from 1,02 to 3,00 in 2016.
For the eight-year period, the instability of indicators of the return on investments ratio with increasing tendency is observed (Picture 8). The return on investments ratio ratio is calculated as a ratio of net profit to sum of equity and long-term liabilities and shows the return from equity involved in commercial activities and long-term borrowed funds.
Assets turnover ratio is the ratio of sales revenue and company’s average total assets for a period and characterizes the effectiveness of using of all available resources, regardless the source of their attraction. The ratio shows how many times per year the full cycle of production and circulation, generating profit, is performed.
For the ten-year period, this business activity ratio demonstrated, in general, the decreasing trend (Picture 9).
Production and services structure
The largest share in TOP-1000 total revenue take companies engaged in wholesale of computers, peripheral devices and software (Picture 10).
Main regions of activity
Companies TOP-1000 are distributed unequally on the territory of the country and registered in 64 regions (Picture 11).
Financial position score
The assessment of TOP-1000 financial position shows that major part has stable or above average financial position (Picture 12).
Solvency index Globas
The majority of TOP-1000 companies have got from superior to medium solvency index Globas, this fact shows the ability of the companies to pay their debts in time and fully (Picture 13).
Therefore, the complex assessment of the information and communication hardware wholesalers, taking into account main indexes, financial indicators and ratios, demonstrates the domination of favorable trends in the industry.
Contrary to common belief, the Russian economy is successfully wending the way of business activity diversification and forming not only by means of oil and gas.
Tax collection to the RF budget system by sectors conforms changes in the economy: following the results of 2017, volume of tax collected from non-materials sector amounted to 70,8%, and 29,2% were recorded for basic materials sector. Totally 17 194 bln RUB, or by 19,5% more than in 2016 with total taxes amount of 14 388 bln RUB, were transferred to the budgets at all levels in the past year.
Taxes and duties paid to the budget at all levels represent total GDP structure of the country (see Picture 1). It is fair to say that business connected with non-renewable resources mining is still on leading position. However, other sectors increase assignments: the share of taxes of manufacturing exceeded 19%, wholesale and retail trade — 10,7% of total payments. Being a new but increasing experience for our country, share of obligatory payments of financial and insurance, as well as scientific and technological activity is 5%, while the same business in the Occident forms over 50% of GDP.
At the same time, in the domestic economy there are structural problems, being well observed regionally:
Main business activity and financial flows are concentrated in few regions: over 61% of all taxes are collected in 10 federal subjects (see Table 1), that largely explains the firmly held views of success, migration attractiveness and stable level of social and economic development of these regions. The rest of 75 subjects accumulate less than 39% of obligatory levies and charges to the budgets.
Moscow accumulates 18% of all taxes to the RF budget system, where 20% accounts for trade, 19% for financing and insurance, 13% for professional, scientific and technical activities.
Khanty-Mansi Autonomous district — Yugra, where 86% of economy accounts for mining operations, is ranked number two with 13% of taxes paid.
Yamal-Nenets Autonomous district, another mineral region, closes the top three with 7% of taxes.
2. Imbalance of economic development
Imbalance economy downsides are shown by single-industry cities, located around one large enterprise. If the employing enterprise is successfully operating, lack or insufficient provision of the region with own made products and food could be barely noticeable. Increased product prices due to additional delivery costs are compensated with high wages. High prices and the absence of alternative jobs are resulted in instability and risk, if any financial difficulties occur at the enterprise.
Region with balanced economy is able to reallocate jobs, prevent out migration, provide with payments to budget under unfavorable conditions of one of the industries and restore balance then.
The current economic structure is reflected in specialty of regions, which can be divided into 4 groups:
- – Postindustrial Moscow with developed service sector, science and trade.
- – Subjects with one prevailing industry — mining of recoverable resources — such as Khanty-Mansi Autonomous district — Yugra, Yamal-Nenets Autonomous district, Nenets Autonomous district where basic materials sector accumulates over 85% of economy. This is exactly the case of resource-based economy alone, but this statement is incorrectly extrapolated nationwide.
- – Traditional industrial centers: Saint-Petersburg, Nizhniy Novgorod and Chelyabinsk regions leading by manufacturing.
- – Regions with mixed economy: Moscow and Samara regions, Krasnodar territory where other realms are alongside with the developed production sector.
|№||Region||Taxes and duties to the budget system of RF, bln RUB||Share of the region in total taxes and duties across RF, %||Specialization of the region, main sectors of receipts to the FR budget system||Share of the sector on total taxes and duties of the subject, %|
|1||Moscow||3 060||18||Wholesale and retail trade||20|
|Financing and insurance||19|
|Professional, scientific and technical activities||13|
|2||Khanty-Mansi Autonomous district — Yugra||2 214||13||Mining||86|
|3||Yamal-Nenets Autonomous district||1 138||7||Mining||86|
|Wholesale and retail trade||7|
|Wholesale and retail trade||8|
|Professional, scientific and technical activities||7|
|Wholesale and retail trade||23|
|Real estate operations||8|
|6||Republic of Tatarstan||557||3||Mining||53|
|Wholesale and retail trade||6|
|Electrical energy industry||11|
|Wholesale and retail trade||6|
|9||Krasnodar territory||338||2||Wholesale and retail trade||20|
|10||Republic of Bashkortostan||336||2||Mining||51|
|Wholesale and retail trade||7|
|Total for Top-10||10 419||61|
3. Disproportion of economic development
The volume of tax collection per capita indicates great disproportion of economic development among regions. National average amount of taxes and duties for 2017 comes out 117 RUB/person per annum. Maximum amount of 2 112 RUB/person was recorded in the Yamal-Nenets Autonomous district, and the minimum of 8 RUB/person — in the Republic of Ingushetia. The difference is 264 times.
|№||Region||Volume of tax receipts to the RF budget system per capita, RUB|
|1||Yamal-Nenets Autonomous district||2 112|
|2||Nenets Autonomous district||1 657|
|3||Khanty-Mansi Autonomous district – Yugra||1 338|
|6||Chukotka Autonomous district||236|
|7||Republic of Komi||212|
|10||Republic of Sakha (Yakutia)||176|
|14||Republic of Tatarstan||143|
|21||Republic of Udmurtia||111|
|30||Republic of Bashkortostan||83|
|32||Nizhniy Novgorod region||79|
|47||Republic of Mordovia||50|
|53||Republic of Karelia||42|
|55||Republic of Khakassia||42|
|59||Republic of Mari El||37|
|60||Republic of Adygea||37|
|61||Jewish Autonomous Region||37|
|62||Republic of Crimea||36|
|63||Republic of Chuvashia||35|
|73||Republic of Altai||30|
|74||Republic of Kalmykia||29|
|78||Republic of Buryatia||28|
|79||Republic of North Ossetia — Alania||25|
|81||Republic of Tyva||19|
|83||Republic of Dagestan||11|
|85||Republic of Ingushetia||8|
Regional economies development factor could be a transition from fiscal equalization, support of subsidized territories by means of federal transfers to promotional strategy based on investment raising, creation of favorable business climate, as well as on transferring a part of taxes from the federal center to the budgets of subjects and municipalities.
Guided by the existing tendency, further increase in share of non-materialssectors is expected. Despite of stabilization of the world oil market conditions, Russia will be under sanction pressure from Europe and the USA in themid-run: ban on purchasing thehi-techequipment for oil and gas extraction for instance. Moreover, devaluation of rouble and implementing import substitution programs stimulate the establishment of companies with high value added.