Information agency Credinform prepared the ranking of Russian sand and clay manufacturers by absolute liquidity ratio. The companies, taken for the study, are the largest by turnover in this industry in the last available in the Statistical register (2013) period. Further Top-10 companies by turnover were ranked in descending order of absolute liquidity ratio value.
Absolute liquidity ratio is calculated as ratio of monetary assets and short-term financial investments, available for the firm, to short-term liabilities. Thus this ratio shows which share of short-term debt liabilities might be met only by means of absolute liquid assets (monetary assets, cash in hand, on bank accounts, as well as on transaction accounts).
A regulatory restriction (more than 0,2) is adopted for this indicator in international practices of financial analysis. It means that each day no less than 20% of short-term liabilities of company are due to be met. At the same time, in order to analyze Russian companies, it is confirmed to use regulatory value from 0,1 to 0,15, taking into account the special aspects of Russian practices. As too high a value of ratio gives evidence of unreasonably high volumes of free monetary assets, which could have been used for business development.
|№||Name, INN||Region||Turnover 2013, mlnRUB||Absolute liquidity ratio, (х)||Globas-i® solvency index|
|1||AO Natsionalnaya Nerudnaya Kompaniya (AO NNK)
|Moscow region||953||0,16||191 (prime)|
|3||ZAO Semiozerskoye Kareroupravlenie
|Leningrad region||1016||0,04||164 (prime)|
|4||ZAO LSR-Bazovye Materialy Severo-Zapad
|Leningrad region||11 048||0,03||263 (high)|
|5||OOO Donskoi kamen
|Rostov region||1361||0,02||250 (high)|
|6||PK Artel Staratelei Neiva
|Sverdlovsk region||1495||0,02||251 (high)|
|7||ZAO Bogaevsky karer
|Moscow region||1227||0,01||184 (prime)|
|8||OAO Novosibirskoye Kareroupravlenie (OAO NKU)
|Novosibirsk region||2876||0,01||224 (high)|
|9||ZAO Kamennogorskoye Kareroupravlenie
|Leningrad region||983||0,01||230 (high)|
|10||OAO Pervaya Nerudnaya Kompaniya (OAO PNK)
AO Natsionalnaya Nerudnaya Kompaniya is placed on the first line of the ranking. The value of company’s absolute liquidity ratio equals to 0,18. This value slightly exceeds Russian standards; however it corresponds to international recommendations. Experts of Information agency Credinform assign high Globas -i® solvency index to the company, which characterizes it as financially sound one.
Absolute liquidity ratio of sand and clay manufacturers in Russia, Top-10
OOO Oblnerudprom showed the maximum close value of absolute liquidity ratio to domestic standards (0,16). Moreover, the company was assigned the prime Globas-i® solvency index, which bears witness to the high ability to meet debt obligations.
The rest of the companies from ranking showed the bottom values of absolute liquidity ratio, which may speak for lack of quick assets in order to meet short-term obligations. However all the Top-10 companies in this ranking were assigned high and prime Globas-i® solvency index, gives evidence of minimal risk of financial insolvency within 12 months.
In conclusion, it should be mentioned that in order to stay financially sound, it is necessary to strike a balance between the sufficient quantities of liquid assets and adequate amount of short-term loans, i.e. to manage its own debt load efficiently.
In accordance with the Civil Code of the RF, a commercial organization may be liquidated due to some key reasons:
- under court decision, on the basis of gross violation of current statutory provisions by this organization;
- voluntary decision of a founder or founders of a company on its winding-up;
- in case when an organization was unable to fulfill its financial obligations, the bankruptcy proceedings are initiated towards it.
The Federal Law № 127-FZ dated October 26, 2002 "On Insolvency (Bankruptcy)" prescribes the necessity to publish all significant facts connected with the bankruptcy proceedings towards a concrete commercial company. Today the sources of information, that allow interested parties (companies, IEs) to find out whether the bankruptcy procedure is executed towards their potential and (or) current contractor bankruptcy, are as follows:
- newspaper «Kommersnat’»;
- Unified Federal Register of bankruptcy information;
- journal «Bulletin of the state registration».
In the decree of the Government of the Russian Federation № 1049-r dated July 21, 2008, the specialized gazette meant for obligatory publication of the information on the progress of bankruptcy proceedings, is the newspaper «Kommersant’».
Unified Federal Register of bankruptcy information
Similar volume of information is to be entered into a special information resource, in terms of which it is gathered, systematized, published and updated all data on the bankruptcy of legal entities in the Russian Federation – the Unified Federal Register of bankruptcy information.
In accordance with the Paragraph 2 of the Article 28 of the Federal Law № 127-FZ dated October 26, 2002 "On Insolvency (Bankruptcy)", the information, that must be placed in such register, is generally available. Thus, the Unified Federal Register of bankruptcy information is an aggregator of information about bankruptcy.
Journal «Bulletin of the state registration»
The journal realizes provisions of the Federal Law of 08.08.2001 № 129-FZ "On State Registration of Legal Entities and Individual Entrepreneurs" and the Paragraph 2 of the Resolution of the Government of the Russian Federation of 19.06.2002 № 438 "On Unified State Register of Legal Entities" concerning ensuring of publication of the data contained in the Unified State Register of Legal Entities (EGRUL), in accordance with the Article 7 of the Law of the Russian Federation of 27.12.1991 № 2124-1 «On mass media».
The journal publishes the data contained in the Unified State Register of Legal Entities in accordance with the Order of the Federal Tax Service of Russia № SAE-3-09 / 355 @ (registered in the Russian Ministry of Justice of 04.07.2006 № 8001), as well as other information, which is to be published in accordance with the legislation of the RF on state registration.
The journal contains the information about intentions of organizations to carry out actions, which require the notification of interested parties, so called legally significant events. These include: voluntary liquidation, company’s reorganization, reduction of authorized capital, acquisition of more than 20% of company’s authorized capital, information on net assets.
The journal publishes the information about the registration actions carried out by tax authorities (data from EGRUL), as well as notifications of tax authorities of the decisions made towards organizations, of removal from EGRUL.