Return on assets of enterprises engaged in water gathering and distribution

Information agency Credinform prepared the ranking of enterprises engaged in water gathering and distribution.

The companies with the highest volume of revenue involved in water gathering and distribution were selected for the ranking according to the data from the Statistical Register for the latest available period (for the year 2013).

Return on assets (%) is the relation of the sum of net profit and interests payable to company’s total assets value. It shows how many monetary units of net profit were earned by each unit of total assets.

The ratio characterizes the efficiency of use by a company of its resources, the efficiency of company’s financial management.

That’s why the higher is the value of this indicator, the higher is the efficiency of business, i.e. the higher is the return on each monetary unit invested in assets. However, when drawing conclusions about financial standing of an enterprise it is necessary to consider two important points.

Firstly, comparison of companies on return on assets ratio can be correctly done only within one branch. For example, in branches with a high turnover of assets as retail trade this indicator will be significantly higher, as in industries, where asset turnover is traditionally low as in machine building industry.

Secondly, it is necessary to take into account the fact that the book value of assets may significantly not conform to their current market value. For example, under the influence of inflation the book value of fixed assets will be increasingly underestimated in the course of time, that will lead to overestimated return on assets. In other words, even within one branch an analyst should consider not only the structure, but also the age of assets.

The existing trend of this indicator also should be taken into account. Its consistent lowering points out the decline in efficiency of use of assets by business, and vice versa.

For getting of the most comprehensive and fair picture of the financial standing of an enterprise it is necessary to pay attention not only to average values of profit, but also to all presented combination of financial data.

Table 1. Revenues, return on assets and solvency index of the largest enterprises engaged in water gathering and distribution (TOP-10)
NameRegionRevenues, in mln RUB, for 2013Return on assets, %Solvency index GLOBAS-i®
1 Samarskie kommunalnye sistemy LLC
INN 6312110828
Samara region 3 608,9 13,09 258 high
2 «MUP Vodokanal Ekaterinburg
INN 6608001915
Sverlovsk region 5 671,4 8,36 178 the highest
3 «MUP g. Novosibirska GORVODOKANAL»
INN 5411100875
Novosibirsk region 4 184,8 2,68 162 the highest
4 «GUP Moskollektor
INN 7708000882
Moscow 5 288,9 2,53 189 the highest
INN 5902817382
Perm region 4 381,6 2,37 241 high
6 Nizhegorodsky vodokanal OJSC
INN 5257086827
Nizhnii Novgorod region 3 483,3 1,35 240 high
7 Rostovvodokanal OJSC
INN 6167081833
Rostov region 4 235,0 0,99 260 high
8  «GUP SKStavropolkraivodokanal
INN 2635040105
Stavropol territory 4 713,9 0,10 220 high
9 Mosvodokanal OJSC
INN 7701984274
Moscow 46 426,9 0,04 197 the highest
10 «MUP POVV g. Chelyabinsk»
INN 7421000440
Chelyabinsk region 3 226,0 0,02 220 high

The revenues of the largest Russian enterprises involved in water gathering and manufacture (TOP-10) according to the last published annual financial statement (for 2013) made 85,2 bln RUB, that is by 8,4% higher, than in the previous period.

enterprises engaged in water gathering and distribution

Picture. Return on assets and revenues of the largest enterprises engaged in manufacture and distribution of water (TOP-10)

The return on assets of all organizations of the TOP-10 is in the positive zone, that on its own is a good indicator for enterprises of housing and utility sector (the majority of companies have a negative ratio). In other words, the leaders finished the year with net profit.

The assets are the most effectively used by Samarskie kommunalnye sistemy LLC: return on its assets is 13,1%, that is well over, than the indicator of Mosvodokanal OJSC, Moscow (0,04%) – the production being largest on revenues. 

According to the independent estimation of the Information agency Credinform, all participants of the TOP-10 got high and the highest solvency index. This fact points to the ability of market players to pay off their debts in time and fully, while risk of default is minimal.

Women in business: where it is well to manage for women

According to the data of the Information agency Credinform, there are about 5 mln active legal entities registered in Russia. Representatives of the fair sex hold top director’s post or have ownership interest approximately in 27% of companies.

At the regional level, the most of women in business is concentrated in Moscow and Moscow region (27%), St. Petersburg and Leningrad region (9%), as well as in Sverdlovsk region (4%).

Picture 1. Distribution of women-directors by regions of the RF

In the overwhelming majority of cases ladies are directors of enterprises with the legal form Limited Liability Company (75,6%). Also quite often women are found among the leadership in various budgetary and non-budgetary institutions.

By spheres of activity representatives of the fair sex manage to a greater extent in wholesale and retail trade (24% and 11%, respectively), in the field of real estate operations (9,3%), as well as in the sphere of education (8%).

Picture 2. Distribution of women-directors by fields of activity

A number of women involved in traditionally "male" sectors of the economy such as mining, construction and air transportation is mounting yearly. Excellent examples are such companies as Rosneftegaz OJSC, Irkutskaya neftyanaya kompaniya LLC and AK Transaero OJSC.

The way of many women in business can serve as an excellent example not only for other ladies, but also for representatives of the stronger sex. So, for example, Olga Belyavtseva succeeded in rising through the ranks from an Economist at the factory for production of beverages Lebedyansky OJSC to a Member of the Board of directors and co-owner of Progress Capital OJSC engaged in manufacture of baby food and mineral water (TM FrutoNyanya, TM Lipetsky byuvet). According to estimates of the experts of the company Credinform, the share of factory’s products makes 34,3% of the total volume of the Russian baby food market in physical terms.

The example of Natalya Kasperskaya is also interesting. In 1997, together with her husband, she founded the largest Russian company, specializing in the development of protection systems from viruses and spam - Laboratoriya Kasperskogo CJSC. Since 2003 Natalya Kasperskaya is the General director of the Group of companies InfoWatch involved in software development for protection against information leaks.

An excellent example of successful management of traditionally "male" enterprise is the personality of Guzelia Safina. Guzelia Muharyamovna is the Deputy General Director of Taif OJSC, a major domestic holding, that controls about 96% of chemical, petrochemical and oil and gas industries of Tatarstan.

To open their business women need the same documents as men. However, ladies worldwide encounter various obstacles, both formal and informal.

According to «Global ranking of gender entrepreneurship and development», prepared in 2014 by Global Entrepreneurship Development Institute (GEDI) together with the company Dell, the most comfortable countries for the development of women's business are the United States, Australia and Sweden. At the same time 75% of countries, participating in investigation, do not meet even the basic requirements for successful development. Unfortunately, Russia is included - it shares the 18th line of the rating with Turkey. According to the experts, the key problem is women's limited access to external borrowings. Around the world it is much complicated for women-entrepreneurs to get a credit, than for men. And in Turkey the problem is some more serious: 50% of women have no opportunity to open a bank account. The situation in countries of Africa and Asia is worse, they are placed at the bottom of the rating: Malaysia, Jamaica, Nigeria, Morocco, Ghana, India, Uganda, Egypt, Bangladesh and Pakistan.

Source: Investigation of GEDI Institute (in 2014, together with the company Dell). 

Picture 3. Map of the Global ranking of entrepreneurship and development 

Explanation to the diagram: countries on the map are painted in different colors according to the place in the ranking. Thus, dark green color corresponds to a high level of scoring estimate, i.e. the business climate for women is most favorable. Yellow – to an average level, dark orange and red – to the lowest level.

It’s interesting that by bad infrastructure the developing countries show amazingly high figures on the number of companies, which are managed by women. Thus, in Ghana 121 women are accounted for by every hundred men-entrepreneurs, and in African countries 69% of startups are representatives of the fair sex. The experts explain such phenomena by that the developing countries use much more active the every opportunity to stimulate the economic growth.

Completing the pre-holiday release, as a departure from the traditional analytics, we’ll provide interesting statistics. The most frequent names of women leaders in Russia are Elena, Tatyana, Natalya, Olga and Irina, and of men - Aleksandr, Sergey, Vladimir, Andrey and Aleksey. It’s interesting that in Moscow and St. Petersburg most of women leaders are named Elena and the most part of men leaders are with the name Aleksandr. Data source: Information and analytical system Globas-i®.

The Information agency Credinform congratulates beautiful ladies with the International Women's Day and wish all of them the prosperity of business and career, family well-being and success in all undertakings.