Financial leverage of companies, involved in developments in the field of natural and engineering sciences

Information agency Credinform prepared a ranking of Russian companies, involved in developments in the field of natural and engineering sciences.

The companies with the highest volume of revenue were selected for this ranking according to the data from the Statistical Register for the latest available period (for the year 2013). These enterprises were ranked by increase in leverage ratio.

Leverage ratio shows the relation of borrowed and own financing sources of an enterprise.

Recommended value: <1. If the indicator is above 1, it testifies to excess of the volume of borrowed funds over own resources of company, and the it is higher, the higher is the risk of the occurrence of liquidity crisis and financial inability of a firm.

However, it’s to be understood that recommended values can differ essentially as well for enterprises of different branches, as for organizations of the same industry, consequently, these values are exclusively of informational character.

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. Turnover, leverage ratio and solvency index of the largest companies involved in developments in the field of natural and engineering sciences (TOP-10)
NameRegionTurnover, in mln RUB, for 2013Leverage ratio, (х)Solvency index GLOBAS-i®
1 NPO Mikrogen Minzdrava Rossii FGUP
INN: 7722292838
Moscow 7 655 0,1 242 high
2 Krylovsky gosudarstvenny nauchny tsentr FGUP
INN: 7810213747
Saint-Petersburg 8 052 0,1 183 the highest
INN: 7423000572
Chelyabinsk region 10 448 0,4 223 high
INN: 5018034218
Moscow region 8 248 0,4 203 high
INN: 7708698473
Moscow 9 089 1,3 161 the highest
6 Gazprom promgaz OJSC
INN: 7734034550
Moscow 4 141 2,6 195 the highest
7 Tupolev OJSC
INN: 7705313252
Moscow 4 611 4,3 312 satisfactory
8 AviadvigatelOJSC
INN: 5904000620
Perm territory 10 771 4,4 220 high
INN: 7721247141
Moscow 6 023 7,2 228 high
INN: 7718016698
Moscow 4 020 84,9 158 the highest

developments in the field of natural and engineering sciences

Рисунок 1. Turnover and leverage ratio of companies involved in developments in the field of natural and engineering sciences (TOP-10)

The turnover of the largest companies involved in developments in the field of natural and engineering sciences (TOP-10) made 73 057 bln RUB, according to the latest published financial statement (for the year 2013).

Only 4 participants of TOP-10 showed the leverage ratio being within recommended values: NPO Mikrogen FGUP НПО (0,1), Krylovsky gosudarstvenny nauchny tsentr FGUP (0,1), RFYATS – VNIITF FGUP (0,4), TSNIIMASH FGUP (0,4).

In other words, borrowed funds of enterprises do not exceed own assets, and if we assume that investors will call in their investments, the mentioned companies will repay its debt with no special troubles.

  • «NPO Mikrogen» is one of three leaders of Russian pharmaceutical companies and is the largest national manufacturer of immunobiological preparations: vaccines, sera, specific immunoglobulins, growth mediums, allergens, probiotics. The unique area of research and production activity of NPO Mikrogen is manufacture of bacteriophages - safety antimicrobials, a viable alternative for antibiotics.
  • «Krylovsky gosudarstvenny nauchny tsentr FGUP» conducts fundamental research in the field of marine and river equipment; develops programs of ship and vessel building and appraisals of projects of marine and river ships, vessels and facilities.
  • «Rossijsky Federalny Yaderny Tsentr – Vserossijsky nauchno-issledovatelsky institut tekhnicheskoy fiziki imeni akademika E.I. Zababakhina» is one of two located in Russia active nuclear arms centres of world-class. At the present time RFYATS – VNIITF is the largest scientific organization both on production of nuclear weapons and on fundamental and applied researching.
  • «Federalnoe gosudarstvennoe unitarnoe predpriyatie Tsentralny nauchno-issledovatelsky institut mashinostroeniya» is the lead institute of the Federal space agency. «TSNIImash» is one of the first enterprises of rocket-and-space branch of the country. From the date of its foundation, it takes part in solution of paramount tasks of domestic rocket and space industry.

Other industry leaders of TOP-10 have borrowed funds exceeding own funds, what is explained to a large extent by their commercial structure.

According to the independent estimation of the Information agency Credinform, all organizations of the TOP-10 (except Tupolev OJSC) got a high and the highest solvency index, what can signal to potential investors, that the largest market players can pay off their debts in time and fully in the moment of their incurrence.


FAS may be divested of free competition control monopoly

The argument over the Federal Antimonopoly Service (FAS) reforms related to reauthorization between its other departments thrives within the expert community.

Based on the results of the Expert Council meeting affiliated to the Government of the Russian Federation as of June 23, Dmitry Medvedev ordered to carry out the inspection of the service powers. According to experts, the large set of FAS powers influence on the operating quality that doesn’t give an opportunity to concentrate on the key problems of competition development.

In particular, the following is defined:
- to delegate the control of the state and state companies purchases to Federal Service for Fiscal and Budgetary Supervision;
- to delegate the FAS rule-making powers to the Ministry of Economy and Development;
- to integrate the FAS with the Federal Tariff Service (FTS).

The Ministry of Economy and Development met the proposals of the experts with hostile attitude. The Federal Service for Fiscal and Budgetary Supervision monitors the reliability of budget expenses and its proper use and FAS – the competition in trading. The delegation of powers might lead to dilution of control function.

In case of the delegation of rule-making powers, there will be either lack of supervision, or the dual liability. At the same time, the role of the other department will be just technical: legislative amendments will be proposed by the antimonopoly department.

The FAS and FST integration issue is still at the stage of discussion.
In the meantime, members of business environment by contrast appeal no to curb the powers, but to enlarge them, as today it is the only department that really protects the business from monopolists and government officials.