Credinform Information Agency offers you a ranking of Equity turnover of paper and cardboard producers. For the ranking, Russian pulp-and-paper mills with highest revenue have been selected and then ranked by number of equity turnover per annum.
Equity turnover reflects the equity turnover rate, which means – in particular, for joint stock companies – activity of funds put at stake by owners of enterprise. Low value of this indicator speaks for inactivity of a part of equity. Increase in turnover means that company’ equity is put into turnover.
|N||Name||INN||Turnover in 2011, ml rub.||Equity turnover||Index|
|1||Syas Pulp-and-Paper Mill OJSC||4718011856||3,356.13||12.22||242(high)|
|2||Vyborg Pulp OJSC||7825481883||2,715.46||11.52||228(high)|
|3||Kamensk Paper-and-Cardboard Plant OJSC||6929000141||1,994.76||3.66||217(high)|
|8||Sukhonsk Pulp-and-Paper Mill LLC||3527009692||2,173.82||1.61||240(high)|
|9||St. Petersburg Cardboard Printing and Publishing Factory OJSC||4719003640||5,381.72||1.24||193(highest)|
|10||Perm Cardboard LLC||5904108952||3,182.25||-20.51||316 (satisfactory)|
Capital turnover directly influences the company’s solvency. Moreover, increase in capital turnover rate against equal remaining conditions reflects growth of production and technical potential of organization.
First two enterprises – Syas Pulp-and-Paper Mill OJSC and Vyborg Pulp OJSC – enjoy rather high equity turnover indicators, as well as high GLOBAS-i solvency index, which speaks for the growth of their business activity.
Equity turnover indicators of Kamensk Paper-and-Cardboard Plant OJSC, Kondopoga OJSC, Volga OJSC, Proletariy CJSC, Shattdekor LLC, Sukhonsk Pulp-and-Paper Mill LLC, and St. Petersburg Cardboard Printing and Publishing Factory OJSC are remarkable lower, however, high and highest solvency index assigned by the Agency to the company proves rather harmonious development of financial ratios of these enterprises.
The only company from the list – Perm Cardboard LLC – has negative equity turnover, which is the evidence of critical financial situation, when the solvency rate is low. It is assumed that monetary funds, short-term financial investments and debt receivables do not cover even its payables and outstanding borrowed funds. Satisfactory solvency index assigned to this company – also due to losses in balance sheet figures structure – confirms average risk of monetary default.
Therefore, if equity turnover rate is too high (which means substantial prevailing of sales rate over invested funds), this results in raise of credit resources; the risk of creditors also rises, and the enterprise may suffer serious hardships due to reduction of profits or general trend to reduction of prices. Low rate means inactivity of a part of equity. In this case, equity turnover index indicates the necessity to invest equity to another source of profit, which better suits the current conditions.
Credinform Information Agency prepared a ranking “Debt/equity ratio of meat and meat products manufacturers in the Northwestern Federal District”. For this ranking, we selected meat and meat products manufacturers in NWFD with highest revenue; then, these producers were ranked by “D/E ratio”.
This financial indicator is a financial stability coefficient that characterizes the liability structure. These indicators are interesting first of all for long-term creditors, since they show the company’s ability to repay its debentures. In particular, the considered indicator – debt/equity ratio – is a ratio of borrowed funds to amount of internal capital and shows how many units of borrowed funds have been added by enterprise to each unit of its own funding sources. Recommended value of the considered indicator is less than 1. At the same time, the ratio of borrowed and internal funds shall not be negative. It is the coefficient value within the interval 0-1, which is one of indicators of high ability of company to repay its liabilities.
|N||Name||INN||Turnover in 2011, ml rub.||D/E ratio||GLOBAS-i® Solvency Index|
|1||Cherepovets Meat Packing Plant OJSC||3528008290||1,570.94||0.123||151 (highest)|
|2||Borovichi Meat Packing Plant CJSC||5320013625||365.76||0.246||175 (highest)|
|3||PskovMyasoProm LLC||6027054607||1,083.08||0.319||211 (high)|
|4||Vologda Meat Packing Plant CJSC||3525070130||1,075.44||0.797||189 (highest)|
|5||Myasoprodukty OJSC||8300030240||451.67||1.054||241 (high)|
|6||Aprel Meat Processing Shop LLC||2902059101||1,083.18||2.006||301 (satisfactory)|
|7||Pit-Produkt LLC||4703058668||4,845.76||3.089||304 (satisfactory)|
|8||FC Peterburzhenka LLC||7811086001||497.22||4.272||265 (high)|
|9||KOMBINAT FOOD PRODUCTS LLC||3907025066||1,574.22||4.304||262 (high)|
|10||Vsevolozhskiy Meat Packing Plant LLC||4703108044||3,233.21||508.663||300 (satisfactory)|
Among first ten companies with the highest turnover, only four enterprises met the standard D/E ratio (Cherepovets Meat Packing Plant OJSC, Borovichi Meat Packing Plant CJSC, PskovMyasoProm LLC and Vologda Meat Packing Plant CJSC). All these companies were assigned by Credinform Agency with highest and high solvency index that proves their ability to repay debentures timely and in full.
D/E ratio indicator of Myasoprodukty OJSC exceeds the target ratio; however, other financial indicators speak for high solvency rate of the company, which is confirmed by GLOBAS–i Index. The same situation is seen at Peterburzhenka Foodstuff Company LLC and KOMBINAT FOOD PRODUCTS LLC.
Aprel Meat Processing Shop LLC and Pit-Produkt LLC also exceeded the recommended value of debt/equity ratio; thereby, the companies add twice and thrice more units of borrowed to each unit of internal resources. However, Vsevolozhskiy Meat Packing Plant LLC draws even more – 509 units of borrowed funds, which is confirmed by satisfactory solvency index, which speaks for mean risk of monetary default.
For retaining market sustainability and ensuring opportunities for further development, these enterprises need to pay better attention to debts/equity ratio as well as to manage debt burden more efficiently.