Article
Trends of builders of engineering constructions

Information agency Credinform presents a review of the activity trends of the largest builders of engineering constructions.

The largest enterprises (TOP-1000) in terms of annual revenue were selected for the analysis according to the data from the Statistical Register for the period of 2010 – 2019 years. The analysis was based on the data from the Information and Analytical system Globas.

Net assets are total assets less total liabilities. This indicator reflects the real value of the property of an enterprise. When the company’s debt exceeds the value of its property, the indicator is considered negative (insufficiency of property).

The largest company of the industry in term of net assets is JSC MOSTOTREST-SERVICE, INN 7701045732, Moscow. In 2019, net assets value of the company amounted to almost 24 billion RUB.

The lowest net assets value among TOP-1000 was recorded for Public company Sibmost, INN 5407127899, Novosibirsk region, the legal entity is declared insolvent (bankrupt) and bankruptcy proceedings are initiated, 22/05/2020.

In 2019, insufficiency of property of the company was indicated in negative value of -5 billion RUB.

For the decade, the average net assets values of TOP-1000 had a trend to increase, with the decreasing growth rates (Picture 1).

Picture 1. Change in average net assets value in 2010 – 2019 Picture 1. Change in average net assets value in 2010 – 2019

The shares of TOP-1000 companies with insufficient property had a trend to increase in the past 6 years (Picture 2).

Picture 2. Shares of companies with negative net assets value in TOP-1000 in 2014 - 2019 Picture 2. Shares of companies with negative net assets value in TOP-1000 in 2014 - 2019

Sales revenue
The revenue volume of the 10 leading industry companies amounted to 37% of the total revenue of TOP-1000 companies. (Picture 3). It gives evidence to the high level of monopolization in this industry.

Picture 3. Shares of TOP-10 companies in the total revenue of 2019 TOP-1000 Picture 3. Shares of TOP-10 companies in the total revenue of 2019 TOP-1000

In general, there is a trend to increase in revenue with the negative dynamics of the growth rates (Picture 4.)

Picture 4. Changes in average industry revenue in 2010 - 2019 Picture 4. Changes in average industry revenue in 2010 - 2019

Profit and loss
The largest industry company in term of net profit is AO VAD, INN 7802059185, Vologda region. The company’s profit amounted to almost 7 billion RUB in 2019.

During the decade, the average profit figures of TOP-1000 companies had a trend to decrease (Picture 5).

Picture 5. Change in average profit (loss) in TOP-1000 in 2010- 2019 Picture 5. Change in average profit (loss) in TOP-1000 in 2010- 2019

For a six-year period, the average net profit figures of TOP-1000 companies had a trend to increase with the increasing average net loss (Picture 6).

Picture 6. Change in average net profit and net loss of TOP-50 companies in 2014 - 2019 Picture 6. Change in average net profit and net loss of TOP-50 companies in 2014 - 2019

Key financial ratios
For the decade, the average values of the current liquidity ratio of TOP-1000 were between the recommended one – from 1,0 to 2,0, with a trend to decrease. (Picture 7).

Current liquidity ratio (current assets to short-term liabilities) shows the sufficiency of company’s assets to repay on short-term liabilities.

Picture 7. Change in average industry values of current liquidity ratio in 2010 - 2019 Picture 7. Change in average industry values of current liquidity ratio in 2010 - 2019

For the decade, there was a general trend to decrease in the average ROI values (Picture 8).

ROI ratio is calculated as net profit to sum of shareholders equity and long-term liabilities, and shows the return of equity involved in commercial activities and long-term borrowed funds.

Picture 8. Change in average industry values of return on investments ratio in 2010 - 2019 Picture 8. Change in average industry values of return on investments ratio in 2010 - 2019

Assets turnover ratio is the ratio of sales revenue and company’s average total assets for a period. It 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 is performed, generating the corresponding effect in the form of profit.

For the decade, there was a trend to decrease (Picture 9).

Picture 9. Change in average industry values of assets turnover ratio in 2010 - 2019 Picture 9. Change in average industry values of assets turnover ratio in 2010 - 2019

Small enterprises
64% companies of TOP-1000 are registered in the Register of small and medium-sized enterprises of the Federal Tax Service of the Russian Federation. At the same time, their share in total revenue of TOP-1000 amounts to 15%, which is lower than the average country value in 2018 – 2019 (Picture 10).

Picture 10. Shares of small and medium business enterprises revenue in TOP-1000 Picture 10. Shares of small and medium business enterprises revenue in TOP-1000

Main regions of activity
TOP-1000 companies are registered in 79 regions and spread in an uneven manner within the country. Almost 51% of the largest by the revenue companies consolidate in Moscow and St. Petersburg (Picture 11).

Picture 11. Revenue distribution of TOP-50 companies by regions in Russia Picture 11. Revenue distribution of TOP-50 companies by regions in Russia

Financial position score
According to the assessment, the financial position of most TOP-1000 companies is above average (Picture 12).

Picture 12. Distribution of TOP-1000 companies by financial position score Picture 12. Distribution of TOP-1000 companies by financial position score

Solvency index Globas
The major part of TOP-1000 companies got Superior / High and Strong / Medium index Globas. This fact shows their ability to meet their obligations fully and by the due date (Picture 12).

Picture 13. Distribution of TOP-1000 companies by Solvency index Globas Picture 13. Distribution of TOP-1000 companies by Solvency index Globas

Conclusion
The complex assessment of the activity of the largest builders of engineering constructions in Russia, taking into account the main indexes, financial indicators and ratios, demonstrates the prevalence of negative trends in 2010 - 2019 (Table 1).

Table 1. Positive and negative trends, evaluation factors, possible development forecast at the period of crisis
Trends and evaluation factors Relative share of factor, %
Dynamics of the average net assets value up10
Rate of growth (decline) in the average size of net assets down-10
Increase / decrease in the share of enterprises with negative values of net assets down-10
Level of competition / monopolization down-5
Dynamics of the average revenue up10
Rate of growth (decline) in the average size of revenue down-10
Dynamics of the average profit (loss) down-10
Growth / decline in average values of companies’ net profit up10
Growth / decline in average values of companies’ net loss down-10
Increase / decrease in average values of current liquidity ratio down-5
Increase / decrease in average values of return on investment ratio down-10
Increase / decrease in average values of asset turnover ratio, times down-10
Share of small and medium-sized businesses in terms of revenue being more than 22% down-10
Regional concentration down-10
Financial position (the largest share) up10
Solvency index Globas (the largest share) up10
Average value of relative share of factors down-3,1

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

Article
Largest employers in Russia

Information agency Credinform represents a ranking of the largest employers in Russia. Using the Information and Analytical system Globas, the experts of the Agency have selected TOP-10 of companies with the highest number of employees and the highest profit per employee, as well as found out in which company the labor resources are used most effectively.

  • Revenue per employee helps to assess the level of labor productivity.
  • Profit per employee allows to assess the effectiveness of human resource management.
Table 1. TOP-10 companies of Russia by the number of employees and figures per employee
Name The number of employees, thousand employees Revenue per employee, thousand RUB Profit per employee, thousand RUB Industry
1 Russian Railways
РЖД
711,6 2534,2 134,7 Passenger transportation
2 RUSSIAN POST
ПОЧТА РОССИИ
277,2 214,7 0,8 Information and communication
3 MAGNIT
МАГНИТ
239,0 5843,3 75,3 Trade
4 ROSTELECOM
РОСТЕЛЕКОМ
130,8 2357,0 -24,7 Information and communication
5 SURGUTNEFTEGAZ
SURGUTNEFTEGAZ
101,1 15294,2 1212,2 Oil and gas
6 FEDERAL PASSENGER COMPANY
ФПК
54,3 4061,7 155,4 Passenger transportation
7 LENTA
ЛЕНТА
42,9 10176,3 263,3 Trade
8 AVTOVAZ
АВТОВАЗ
36,2 8007,3 -1,0 Car manufacturing
9 DIKSI YUG
DIKSI YUG
34,3 8168,1 23,2 Trade
10 URALVAGONZAVOD
УРАЛВАГОНЗАВОД им. Ф.Э. Дзержинского
30,1 2718,7 104,8 Military industrial complex

Russian Railways lead by the number of employees. The company confirms the status of the systemically important enterprise in Russia, since over 711 thousand people are employed in its structure.

It is noteworthy that the ranking includes three food retailers: MAGNIT, LENTA and Дикси. The companies are the largest federal retail chains, which have 27 thousand stores and employ about 316 thousand people throughout Russia.

The highest revenue and profit per employee was recorded for the oil company SURGUTNEFTEGAZ. One employee brought the organization 15,2 million RUB of revenue and 1,2 million RUB of net profit. Surgutneftegaz is not only the largest employer in Russia, but also the most efficient company in term of the labor management.

The lowest revenue per employee was recorded for state postal network RUSSIAN POST (214,7 thousand RUB), and ROSTELECOM and AVTOVAZ have a loss per employee.

The ranking showed that the largest amount of revenue and net profit per employee is accounted for by food retail and oil and gas companies.