Information agency Credinform represents an overview of activity trends of the largest companies in the real sector of the economy of Altai territory.

The enterprises with the largest volume of annual revenue of the real sector of the economy in Altai territory (TOP-1000) were selected for the analysis, according to the data from the Statistical Register for the latest available periods (for 2012-2017). The analysis was made on the basis of the data of the Information and Analytical system Globas.

Net asset value is an indicator, reflecting the real value of the property of an enterprise. It is calculated annually as the difference between assets on the balance sheet of the enterprise and its debt obligations. The indicator of net assets is considered negative (insufficiency of property), if company’s debt exceeds the value of its property.

Table 1. The largest companies of the real sector of economy in Altai territory with the largest and smallest net assets in 2013 – 2017

№, Name, INN, type of activity	Net asset value, billion RUB					Solvency index Globas
	2013	2014	2015	2016	2017
1	2	3	4	5	6	7
1 PKF MARIYA-RA LLC INN 2225021331 Lease and management of own or leased non-residential real estate Negative signs of "fly-by-night" and unreliable company are detected	2,1	5,0	12 459,9	16 328,6	20 556,8	550 Insufficient
2 ROZNITSA K-1 LLC INN 2225074005 Retail trade in non-specialized stores	31,5	22,5	11 893,6	14 524,9	15 435,9	187 High
3 EVALAR NJSC INN 2227000087 Manufacture of drugs	8 200,7	10 032,4	12 828,9	13 421,4	14 109,3	179 High
4 PKF DIPOS LLC INN 7726044240 Wholesale of wood products, construction materials and technical equipment	2 508,8	2 788,2	3 140,2	4 139,4	4 891,8	200 Strong
5 ALTAI-KOKS PJSC INN 2205001753 Coke production	5 181,2	4 629,4	5 532,2	4 197,0	4 668,0	181 High
996 PAVLOVSKAYA PTITSEFABRIKA NJSC INN 2261003521 Poultry breeding Process of being wound up 04.12.2014	27,2	20,9	-346,0	-496,7	-578,4	600 Insufficient
997 PLANETA DETSTVA BR LLC INN 2224133018 Wholesale of toys and games Process of being wound up 22.04.2016	7,3	8,3	-405,7	-674,5	-634,3	600 Insufficient
998 NK ROSNEFT – ALTAINEFTEPRODUKT PJSC INN 2225007351 Retail sale of motor fuel in specialized stores	-190,3	-632,4	-875,3	-951,5	-1 095,4	290 Medium
999 ALTAIMYASOPROM LLC INN 2277011020 Breeding of pigs Сase on declaring the company bankrupt (insolvent) is proceeding	8,4	9,8	-1 328,2	-2 163,0	-2 688,0	550 Insufficient
1000 YUG SIBIRI LLC INN 2224148021 Production of oils and fats Process of being wound up 04.07.2018	1,2	5,8	-34,1	-1 443,1	-2 987,6	600 Insufficient

— growth of the indicator to the previous period, — decline of the indicator to the previous period.

The average values of net assets of TOP-1000 enterprises tend to increase over the five-year period (Picture 1).

Picture 1. Change in the average indicators of the net asset value of TOP-1000 enterprises in 2013 – 2017

The shares of TOP-1000 enterprises with insufficiency of assets have a tendency to increase in the last five years (Picture 2).

Picture 2. Shares of enterprises with negative values of net assets in TOP-1000

Sales revenue
The revenue volume of 10 leading companies of the region made 37% of the total revenue of TOP-1000 in 2017 (Picture 3). It points to a high level of concentration of production in the Altai territory.

Picture 3. Shares of participation of TOP-10 companies in the total revenue of TOP-1000 enterprises for 2017

In general, there is a trend towards an increase in revenue volume (Picture 4).

Picture 4. Change in the average revenue of TOP-100 enterprises in 2013 – 2017

Profit and losses
The net profit volume of 10 industry leaders of the region made 49% of the total profit of TOP-1000 companies in 2017 (Picture 5).

Picture 5. Shares of participation of TOP-10 companies in the total volume of net profit of TOP-1000 enterprises for 2017

In general, the average profit of TOP-1000 enterprises trends to increase over the five-year period (Picture 6).

Picture 6. Change in the average values of profit of TOP-1000 enterprises in 2013 – 2017

Average values of net profit’s indicators of TOP-1000 companies increase for the five-year period, at the same time also the average value of net loss increases. (Picture 7).

Picture 7. Change in the average values of indicators of net profit and net loss of TOP-1000 companies in 2013 – 2017

Key financial ratios
Over the five-year period the average indicators of the total liquidity ratio of TOP-1000 enterprises were above the range of recommended values - from 1,0 up to 2,0, with a tendency to increase (Picture 8).

The total liquidity ratio (the relation of the amount of current assets to short-term liabilities) shows the sufficiency of company’s funds for repayment of its short-term liabilities.

Picture 8. Change in the average values of the total liquidity ratio of TOP-1000 enterprises in 2013 – 2017

There has been a high level of average values of the return on investment ratio for five years, with a tendency to decrease (Picture 9).

The ratio is calculated as the relation of net profit to the sum of own capital and long-term liabilities and demonstrates the return on the equity of own capital involved in the commercial activity and the long-term borrowed funds of an organization.

Picture 9. Change in the average values of the return on investment ratio of TOP-1000 enterprises in 2013 – 2017

Asset turnover ratio is calculated as the relation of sales proceeds to the average value of total assets for a period and characterizes the efficiency of use of all available resources, regardless of the sources of their attraction.
The ratio shows how many times a year a complete cycle of production and circulation is made, yielding profit.

This ratio of business activity showed a tendency to decrease over the five-year period (Picture 10).

Picture 10. Change in the average values of the asset turnover ratio of TOP-1000 enterprises in 2013 – 2017

Production and service structure
The largest shares in the total revenue of TOP-1000 are owned by companies, specializing in the wholesale and retail trade (Picture 11).

Picture 11. Distribution of types of activity in the total revenue of TOP-1000 companies

79% of TOP-1000 companies are registered in the Register of small and medium-sized businesses of the Federal Tax Service of the RF. At the same time, their share in the total revenue of TOP-1000 enterprises amounted to 27%, that is higher than the national average (Picture 12).

Picture 12. Shares of proceeds of small and medium-sized businesses in TOP-1000 companies

Main regions of activity
The TOP-1000 companies are distributed unequal across the region. 69% of the largest enterprises in terms of revenue are concentrated in the regional center – in Barnaul and Biysk district (Picture 13).

Picture 13. Distribution of the revenue of TOP-1000 companies by regions of Altai territory

Financial position score
An assessment of the financial position of TOP-1000 companies shows that vast majority of them are in a stable financial position and above average (Picture 14).

Picture 14. Distribution of TOP-1000 companies by financial position score

Solvency index Globas
Vast majority of TOP-1000 companies got High or Strong/Medium Solvency index Globas, that points to their ability to pay off their debts in time and fully (Picture 15).

Picture 15. Distribution of TOP-1000 companies by solvency index Globas

Industrial production index
According to the Federal State Statistics Service, there is a tendency towards an increase in indicators of the industrial production index in Altai territory during 12 months of 2018 (Picture 16).

Picture 16. Industrial production index in Altai territory in 2018, month to month (%)

According to the same information, the share of enterprises of Altai territory in the amount of revenue from the sale of goods, works, services made 0,43% countrywide for 9 months of 2018.

Conclusion
A comprehensive assessment of activity of the largest companies in the real sector of the economy of Altai territory, taking into account the main indices, financial indicators and ratios, points to the prevalence of positive trends (Table 2).

Table 2. Positive and negative trends, evaluation factors of TOP-1000 companies

Trends and evaluation factors of TOP-1000 enterprise	Specific share of factor, %
Rate of growth (decline) in the average size of net assets	10
Increase / decrease in the share of enterprises with negative values of net assets	-10
Concentration level of capital	-10
Rate of growth (decline) in the average size of revenue	10
Rate of growth (decline) in the average size of profit (loss)	10
Growth / decline in average values of companies’ net profit	10
Growth / decline in average values of companies’ net loss	-10
Increase / decrease in average values of total liquidity ratio	10
Increase / decrease in average values of return on investment ratio	-5
Increase / decrease in average values of asset turnover ratio, times	-10
Share of small and medium-sized businesses in the region in terms of revenue being more than 22%	10
Regional concentration	-10
Financial position (the largest share)	10
Solvency index Globas (the largest share)	10
Industrial production index	10
Average value of the specific share of factors	2,3

— positive trend (factor), — negative trend (factor).

Information Agency Credinform presents a review of activity trends of the largest Russian telecommunications companies.

Telecommunications companies with the largest annual revenue (TOP-10 and TOP-1000) have been selected for the analysis, according to the data from the Statistical Register for the latest available accounting periods (2015 — 2017). The analysis was based on the data from the Information and Analytical system Globas.

Net asset value indicates fair value of corporate assets and is calculated annually as assets on balance less company’s liabilities. Net asset value is negative (insufficiency of property) if liabilities are larger than the property value.

Table 1. Top Russian telecommunications companies with the largest and the smallest net assets in 2015 – 2017

No. in TOP-1000, Name, INN, region, activity	Net asset value, billion RUB			Solvency index Globas
	2015	2016	2017
1	2	3	4	5
1 PJSC ROSTELECOM INN 7707049388 Saint Petersburg Wired telecommunications activities	280,38	274,83	273,99	247 Medium
2 JSC MEGAFON INN 7812014560 Moscow Wired telecommunications activities	163,07	149,68	128,32	235 Strong
3 Mobile TeleSystems JSC INN 7740000076 Moscow Wireless telecommunications activities In process of reorganization in the form of acquisition of other legal entities since 04.07.2018	37,88	37,23	114,72	207 Strong
4 PJSC VIMPEL-COMMUNICATIONS INN 7713076301 Moscow Mobile communications services for voice transmission	119,54	108,28	93,27	188 High
5 JSC Moscow City Telephone Network INN 7710016640 Moscow Wired telecommunications activities Cases on declaring the company bankrupt (insolvent) are proceeding	98,13	88,99	82,42	550 Insufficient
996 JSC GlobalStar-Space Telecommunications INN 7717089767 Moscow Satellite telecommunications activities	-1,45	-1,56	-0,31	269 Medium
997 Trivon Networks LLC INN 5054086236 Moscow Wired telecommunications activities	-0,33	-0,38	-0,47	334 Adequate
998 MIRANDA-MEDIA LLC INN 7702527584 Republic of Crimea Data transmission and access to the Internet services	-0,44	-0,51	-0,53	302 Adequate
999 STACK DATA NETWORK LLC INN 7713730490 Moscow Telephone communication services	-0,09	-0,35	-0,83	331 Adequate
1000DATAPRO LLC INN 7704825145 Moscow Other wired telecommunications activities	-2,12	-1,88	-1,96	339 Adequate

— growth compared to prior period, — decline compared to prior period.

Average net assets of TOP-1000 companies tended to decrease during the last decade (Picture 1).

Picture 1. Change in average net assets of telecommunications companies in 2008 — 2017

The share of TOP-1000 companies with insufficiency of property tends to decrease within the last 3 years (Picture 2).

Picture 2. Share of TOP-1000 companies with negative value of net assets in 2015-2017

Sales revenue
In 2017 sales revenue of 10 industry leaders amounted to 78% of total revenue of TOP-1000 companies (Picture 3). This is an indicator of a high level of monopolization within the industry.

Picture 3. TOP-10 companies by their share in 2017 total revenue of TOP-1000 companies

In general, average industry revenue tends to decrease during the decade (Picture 4).

Picture 4. Change of average industry revenue of telecommunications companies in 2008 – 2017

Profit and loss
In 2017 net profit of 10 industry leaders amounted to 89% of total net profit of TOP-1000 companies (Picture 5).

Picture 5. TOP-10 companies by their share in 2017 total net profit of TOP-1000

During the last decade average industry net profit tended to decrease (Picture 6).

Picture 6. Change in average industry net profit of telecommunications companies in 2008 — 2017

During the last 3 years average industry net profit of TOP-1000 companies increased, and the average net loss decreased (Picture 7).

Picture 7. Change in average net profit and loss of TOP-1000 companies in 2015 — 2017

Key financial ratios
During the last decade average values of total liquidity ratio were below the recommended value — from 1,0 to 2,0, tending to decrease (Picture 8).

Total liquidity ratio (a ratio of current assets to current liabilities) reveals the sufficiency of a company’s funds for meeting its short-term liabilities.

Picture 8. Change in average values of total liquidity ratio of telecommunications companies in 2008 — 2017

During the last decade, average industry values of return on investment ratio tended to grow (Picture 9).

It is a ratio of net profit to total equity and noncurrent liabilities, and it demonstrates benefit from equity engaged in business activity and long-term raised funds of the company.

Picture 9. Change in average values of return on investment ratio of telecommunications companies in 2008 — 2017

Assets turnover ratio is a ratio of sales revenue to average total assets for the period, and it measures resource efficiency regardless of the sources. The ratio indicates the number of profit-bearing complete production and distribution cycles per annum.

During the decade, this activity ratio tended to increase (Picture 10).

Picture 10. Change in average values of assets turnover ratio of telecommunications companies in 2008 — 2017

Structure of production and services
Companies that provide wired telecommunications services have the majority share in the total revenue of TOP-1000 companies (Picture 11).

Picture 11. Types of activity by their share in total revenue of TOP-1000 companies

77% of TOP-1000 companies are included in the Register of small and medium-sized businesses of the Federal Tax Service of the Russian Federation. In general, their share in total revenue of TOP-1000 in 2017 amounted to 6% (Picture 12).

Picture 12. Shares of small and medium-sized enterprises in TOP-1000 companies' revenue, %

Key regions of activity
TOP-1000 companies are unevenly located throughout Russian territory and are registered in 79 regions. The largest revenue shares are concentrated in the major cities - Moscow and Saint Petersburg (Picture 13).

Picture 13. Revenue of TOP-1000 companies by Russian regions

Financial position score
Assessment of financial state of TOP-1000 companies indicates that most of the companies have an above average financial position (Picture 14).

Picture 14. TOP-1000 companies by their financial position score

Solvency index Globas
The majority of TOP-1000 companies have got a superior, high, strong or medium Solvency index Globas, that indicates their capability to meet liabilities timely and in full (Picture 15).

Picture 15. TOP-1000 companies by Solvency index Globas

Conclusion
A comprehensive assessment of the largest telecommunications companies, that considers key indexes, financial figures and ratios, is indicative of lack of clearly defined trends within the sector (Table 2).

Table 2. Positive and negative trends, industry assessment factors

Trends and assessment factors	Relative share of the factor, %
Rate of growth (decline) of average industry net assets	-10
Increase/ Decrease of share of companies with negative net assets	10
Rate of growth (decline) of average industry revenue	-10
Level of competition / monopolization	-10
Rate of growth (decline) of average industry net profit (loss)	-10
Increase/ Decrease of average industry net profit of TOP-1000 companies	10
Increase/ Decrease of average industry net loss of TOP-1000 companies	10
Increase/ Decrease of average industry total liquidity ratio	-10
Increase/ Decrease of average industry return on investment ratio	10
Increase/ Decrease of average industry assets turnover ratio	10
Share of small and medium-sized business within the industry by revenue over 22%	-10
Regional concentration	-10
Financial standing (majority share)	10
Solvency index Glogas (majority share)	10
Average factors' value	0,0

— positive trend (factor), — negative trend (factor).