Information agency Credinform has prepared a review of trends of the largest Russian providers of social services.
The largest companies providing social services to the old and disabled people, child care services, social care, etc. (TOP-1000) in terms of annual revenue were selected for the analysis according to the data from the Statistical Register for the latest available periods (2010-2019). The analysis was based on the data of the Information and Analytical system Globas.
The largest organization in term of net assets is REPUBLICAN FOUNDATION FOR SUPPORTING SOCIAL AND ECONOMIC PROGRAMS SOZIDANIE, INN 1326178496, the Republic of Mordovia. In 2019, net assets value of the foundation amounted to 1996 million RUB.
The lowest net assets value among TOP-1000 belonged to ZNAYKA KINDERGARTEN LLC, INN 5047152061, Moscow. In 2019, insufficiency of property of the organization was indicated in negative value of -348 million RUB.
Covering the ten-year period, the average net assets values have a trend to increase with a positive dynamics of the growth rate (Picture 1).
In general, for the past five years, organizations with insufficient property had significant shares in the TOP-1000 with a trend to some decrease (Picture 2).
In 2019, the revenue volume of 10 largest organizations of the industry was 26% of total TOP-1000 revenue (Picture 3). This is indicative of relatively high level of competition in the sector.
In general, there is a trend to decrease in revenue with positive dynamics of the growth rate (Picture 4).
Profit and loss
The largest organization in term of net profit is LLC MANAGING COMPANY NOVOLETIE, INN 5904182219, Perm territory. Its profit for 2019 reached 521 million RUB.
Covering the ten-year period, there is a trend to increase in average net profit (Picture 5).
For the five-year period, the average net profit values of TOP-1000 have the decreasing trend with the decreasing net loss (Picture 6).
Key financial ratios
Covering the ten-year period, the average values of the current liquidity ratio were mainly out of the recommended one - from 1,0 to 2,0 with a trend to increase (Picture 7).
Covering the ten-year period, the average values of ROI ratio have a trend to increase (Picture 8).
Covering the ten-year period, business activity ratio demonstrated the increasing trend (Picture 9).
67% of TOP-1000 organizations are registered in the Register of small and medium-sized enterprises of the Federal Tax Service of the Russian Federation. Their share in total revenue of TOP-1000 is 57% that is over three times above the national average in 2018-2019 (Picture 10).
Main regions of activity
Organizations of TOP-1000 are registered in 74 regions of Russia, and unequally located across the country. Over 46% of organizations largest by revenue are located in Moscow and Saint Petersburg (Picture 11).
Financial position score
Assessment of the financial position of TOP-1000 organizations shows that the majority of them have financial position above average (Picture 12).
Complex assessment of activity of the largest Russian providers of social services, taking into account the main indexes, financial ratios and indicators, demonstrates the prevalence of positive trends (Table 1).
|Trends and evaluation factors||Relative share of factors, %|
|Dynamics of the average net assets value||10|
|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||5|
|Level of competition / monopolization||10|
|Dynamics of the average revenue||-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||5|
|Increase / decrease in average values of return on investment ratio||10|
|Increase / decrease in average values of asset turnover ratio, times||10|
|Share of small and medium-sized businesses in terms of revenue being more than 20%||10|
|Financial position (the largest share)||10|
|Solvency index Globas (the largest share)||10|
|Average value of relative share of factors||5,6|
positive trend (factor), negative trend (factor).
Information agency Credinform has prepared a ranking of the largest social service companies in Russia. The companies rendering social services to senior citizens and disabled people, providing child and social care etc. (TOP-10) with the largest annual revenue were selected for the ranking, according to the data from the Statistical Register and Federal Tax Service for the latest available accounting periods (2017 - 2019). Then the enterprises were ranked by the debt-to-assets ratio (Table 1). The analysis was based on the data from the Information and Analytical system Globas.
Sales revenue and net profit demonstrate a company’s size and its business efficiency, and debt to solvency ratio indicates the risk of insolvency.
A value that exceeds the maximum standard value indicates an excessive loan overburden that may facilitate development, but as well may have a negative impact on stability of corporate funds. A value lower than the minimum standard value may speak of a conservative financial management strategy and of an excessive caution in raising new debt funds.
In order to get the most comprehensive and fair picture of the financial standing of an enterprise it is necessary to pay attention to all combination of financial indicators and company’s ratios.
|Name, INN, region||Revenue, million RUB||Net profit (loss), million RUB||Debt-to-assets ratio (x), from 0,2 to 0,5||Solvency index Globas|
|BF NO BLAGOTVORITELNYI FOND PODDERZHKI VETERANOV TRUDA NADEZHDA
INN 7714321154 Moscow
INN 6229063499 Ryazan region
|OOO DOBROE DELO
INN 7733241842 Moscow
|OOO UPRAVLYAYUSHCHAYA KOMPANIYA NOVOLETIYE
INN 5904182219 Perm krai
INN 7733806570 Moscow
INN 3525255572 Vologda region
INN 7840317422 Saint Petersburg
|OOO CENTR PROEKTIROVANIYA OBUVI SPETSIALNOGO NAZNACHENIYA ORTOMODA
INN 7718195662 Moscow
|ANO EKSPERTNY INSTITUT SOTSIALNYKH ISSLEDOVANII
INN 7703424479 Moscow
INN 6168004976 Rostov region
|Average value for TOP-10||179,62||257,22||1,05||44,68||0,35||0,46|
|Industry average value||1,52||2,78||2,32||71,96||0,03||0,99|
improvement compared to prior period, decline compared to prior period
Average value of debt-to-assets ratio of TOP-10 companies is lower than the average industry one. Two companies have the standard value in 2019.
During the decade, average industry values of debt-to-assets ratio were on the whole beyond the limits of the standard value and had a tendency to improve (Picture 2)