Equity turnover of paper and cardboard producers in the Russian Federation

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.

Equity turnover and solvency index of paper and cardboard producers with highest turnover
NNameINNTurnover in 2011, ml rub.Equity turnoverIndex
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)
4 Kondopoga OJSC 1003000650 14,318.65 2.94 273(high)
5 Volga OJSC 5244009279 9,885.57 2.41 278(high)
6 Proletariy CJSC 3229000246 2,170.31 2.11 170(highest)
7 Shattdekor LLC 5049011877 2,791.49 2.04 203(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.

Debt/equity ratio of meat and meat products manufacturers in the Northwestern Federal District

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.

Solvency index and debt/equity ratio of meat and meat products manufacturers with highest total revenue
NNameINNTurnover in 2011, ml rub.D/E ratioGLOBAS-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.