Information agency Credinform has observed trends in the activity of the largest companies of the real sector of economy in Voronezh region

Enterprises with the largest volume of annual revenue (TOP-1000), were selected for the analysis, according to the data from the Statistical Register for the latest available periods (for 2013-2017). The analysis was made on the basis of the data of the Information and Analytical system Globas.

Net assets is an indicator, reflecting the real value of company's property, is calculated annually as the difference between assets on the enterprise balance 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. Companies of Voronezh region with the largest and smallest amount of net assets in 2013 – 2017

№ in TOP-1000 Name, INN, main type of activity	Net assets value, billion RUB					Solvency index Globas
	2013	2014	2015	2016	2017
1	2	3	4	5	6	7
1 JSC MINUDOBRENIYA INN 3627000397 Manufacture of fertilizers and nitrogen compounds	22728	28299	39839	43807	47029	209 Strong
2 JSC ILYUSHIN FINANCE Co. INN 3663029916 Financial leasing (leasing/subleasing)	22352	19100	18960	16533	17430	289 Medium
3 JSC Liski-Fitting INN 3652000930 Manufacture of tubes, pipes, hollow profiles and related fittings, of steel	7993	10945	13369	14477	14605	207 Strong
4 JSC Voronezh Synthetic Rubber INN 3663002167 Manufacture of synthetic rubber in primary forms	3583	3404	9874	10588	11369	179 High
5 JSC VORONEZH AIRCRAFT INN 3650000959 Manufacture of helicopters, aeroplanes and other aircraft	3415	9112	10469	10568	9720	273 Medium
996 WOODVILLE LIMITED INN 3602006598 Manufacture of wooden building constructions and millwork Bankruptcy proceedings	40	49	50	53	-1402	550 Insufficient
997 JSC VIDEOPHONE INN 3661000333 Renting and operating of own or leased untenanted real estate Process of being wound up, 07.08.2017	505	511	517	518	-1906	600 Insufficient
998 JSC CHERNOZEM COMMUTER PASSENGER COMPANY INN 3664108409 Passenger rail transport, interurban	-2563	-3146	-2739	-2704	-2703	275 Medium
999 JSC UZ-DAEWOO AUTO-VORONEZH INN 6451119803 Wholesale of motor cars and light motor vehicles Process of being wound up, 25.05.2017	263	288	291	-4951	-5146	273 Medium
1000 KELLOGG RUS LLC INN 3661048688 Manufacture of preserved rusks, crackers and other rusk bakery products, pastry, cakes, fancy cakes, pies and biscuits	-4927	-5702	-7608	-7778	-8414	260 Medium

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

For a five-year period average amount of net assets of TOP-1000 companies has increasing tendency (Picture 1).

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

Share of companies with insufficiency of property in the TOP-1000 has increasing trend for the last five years (Picture 2).

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

Sales revenue
The revenue volume of 10 leaders of the industry made 21% of the total revenue of TOP-1000 companies in 2017(Picture 3). It demonstrates low level of productive concentration in Voronezh region.

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

In general, an increasing tendency in revenue volume is observed (Picture 4).

Picture 4. Change in the average revenue of TOP-1000 companies in 2013 – 2017

Profit and losses
The profit volume of 10 leading enterprises in 2017 made 35% of the total profit of TOP-1000 companies (Picture 5).

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

In general, the average values of profit indicators of TOP-1000 companies tend to increase over a five-year period (Picture 6).

Picture 6. Change in the average indicators of profit and loss of TOP-1000 companies in 2013 – 2017

Over a five-year period, the average values of net profit indicators of TOP-1000 companies tend to increase. Besides, the average value of net loss decreases (Picture 7).

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

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

The current 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 current liquidity ratio of TOP-1000 companies in 2013 – 2017

Sufficiently high level of average values of the indicators of the return on investment ratio with decreasing tendency has been observed for five years (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 involved in the commercial activity of own capital 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 companies in 2013 – 2017

Asset turnover ratio is calculated as the relation of sales revenue 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 business activity ratio showed a tendency to decrease for a five-year period (Picture 10).

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

Production structure
The largest share in the total revenue of TOP-1000 is owned by companies, specializing in wholesale and manufacture of food products (Picture 11).

Picture 11. Распределение видов деятельности в суммарной выручке компаний ТОП-1000

73% of TOP-1000 companies are registered in the Register of small and medium enterprises of the Federal Tax Service of the RF. Besides, share of the companies in the total revenue of TOP-1000 amounts to 31% that is above the average indicator for the country (Picture 12).

Picture 12.  Shares of small and medium enterprises in TOP-1000 companies

Main regions of activities
TOP -1000 companies are unequally distributed on Voronezh region territory and registered in 34 districts. 70% of the largest companies in terms of revenue volume are concentrated in the center of Voronezh region – Voronezh city (Picture 13).

Picture 13. Distribution of TOP-1000 companies by districts of Voronezh region

Financial position score
An assessment of the financial position of TOP-1000 companies shows that the largest number is in stable and an above the average financial position. (Picture 14).

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

Solvency index Globas
Most of TOP-1000 companies have got from Medium to Superior Solvency index Globas, that points to their ability to repay 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 data from the Federal State Statistics Service, during 12 months of 2018 increasing tendency is observed for the industrial production index of the enterprises of Voronezh region (Picture 16). Besides, the average indicator of index from month to month amounted to 96,5%.

Picture 16. Industrial production index of manufacture of the enterprises of Voronezh region in 2018, month to month (%)

According to the same data, share of the enterprises of Voronezh region in revenue volume from sale of goods, products, works services countrywide for 2018 was 0,62%.

Conclusion
Comprehensive assessment of the activity of largest real economy enterprises of Voronezh region, taking into account the main indexes, financial indicators and ratios, demonstrates the presence of favorable trends (Table 2).

Table 2. Positive and negative trends, assessment factors of the TOP-1000

Trends and assessment factors for TOP-1000	Share of factor, %
Rate of increase (decrease) of average amount of net assets	10
Increase / decrease of share of companies with negative values of net assets	-10
Level of capital concentration	10
Increase (decrease) rate of average revenue amount	10
Increase (decrease) rate of average net profit (loss) amount	10
Increase / decrease of average net profit amount of TOP-1000 companies	10
Increase / decrease of average net loss amount of TOP-1000 companies	-10
Increase / decrease of average industrial values of the current liquidity ratio	5
Increase / decrease of average industrial values of the return on investments ratio	-10
Increase / decrease of average industrial values of the assets turnover ratio, times	-10
Share of small and medium enterprises in the industry in terms of revenue volume more than 22%	10
Regional concentration	-10
Financial position (major share)	10
Solvency index Globas (major share)	10
Industrial production index	5
Average value of factors	2,7

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

Information agency Credinform has prepared a review of trends in activity of the largest Russian hotels.

The largest companies (ТОP-10 and ТОP-1000) in terms of annual revenue were selected according to the data from the Statistical Register for the latest available periods (2015 - 2017). The analysis was based on data of the Information and Analytical system Globas.

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

Table 1. The largest Russian hotels with the highest and lowest net assets rate in 2015 – 2017

Position in ТОP-1000 Name, INN, region	Net assets value, billion RUB			Solvency index Globas
	2015	2016	2017
1	2	3	4	5
1 LLC EKOLOGO-TURISTICHESKII TSENTR V PARKOVOM INN 9103016009 Republic Of Crimea	5,99	6,06	7,64	191 High
2 LLC PROMETEY-CITY INN 7702648726 Moscow	3,77	3,68	3,71	210 Strong
3 PAO HOTEL COSMOS INN 7717016198 Moscow	2,88	3,22	3,65	141 Superior
4 VISIT- MOSCOW, LTD INN 7703026485 Moscow	4,28	4,32	3,55	251 Medium
5 NAO LOTTE RUS INN 7704169180 Moscow	0,63	2,62	3,32	238 Strong
996 LLC HOTEL DEVELOPMENT COMPANY INN 6658383040 Sverdlovsk region	-4,16	-4,25	-4,30	320 Adequate
997 NAO Krasnaya polyana INN 2320102816 Krasnodar region	1,31	-4,21	-5,37	275 Medium
998 LLC InvestGroup-Hotel INN 7724654956 Krasnodar region Сase on declaring the company bankrupt (insolvent) is proceeding	-5,64	-6,35	-7,01	550 Insufficient
999 LLC YUG-NOVYI VEK INN 2320092269 Krasnodar region	-12,28	-15,47	-10,57	320 Adequate
1000 SKI RESORT DEVELOPMENT COMPANY ROSA KHUTOR LLC INN 7702347870 Moscow	-31,01	-41,09	-42,81	267 Medium

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

For the last five years, the average values of TOP-1000 net assets showed the downward trend (Picture 1).

Picture 1. Change in average net assets value of Russian hotels in 2013 – 2017

For the last three years, the share of ТОP-1000 enterprises with lack of property are relatively at a high level and showed the downward trend (Picture 2).

Picture 2. The share of enterprises with negative net assets value in ТОP-1000 in 2015-2017

Sales revenue
In 2017, the total revenue of 10 largest companies amounted to 16% from ТОP-1000 total revenue (Picture 3). This fact testifies high level of competition within industry.

Picture 3. Shares of TOP-10 in TOP-1000 total revenue for 2017

In general, for the last ten years, the downward trend in average revenue is observed (Picture 4).

Picture 4. Change in average revenue of Russian hotels in 2008 – 2017

Profit and loss
In 2017 profit of 10 largest companies amounted to 27% from TOP-1000 total profit (Picture 5).

Picture 5. Shares of TOP-10 companies in TOP-1000 total profit for 2017

For the last ten years, the average profit values show the downward trend (Picture 6).

Picture 6. Change in average profit of TOP-1000 in 2008 – 2017

Over a three-year period, the average net profit values of ТОP-1000 show the increasing tendency, along with this the average net loss is decreasing (Picture 7).

Picture 7. Change in average net profit/loss of ТОP-1000 companies in 2015 – 2017

Main financial ratios
For the last ten years, since 2014 the average values of the current liquidity ratio were lower than the recommended values - from 1,0 to 2,0, with downward trend (Picture 8).

The current liquidity ratio (ratio of total working capital to short-term liabilities) shows the sufficiency of company’s assets to meet short-term obligations

Picture 8. Change in average values of current liquidity ratio of Russian hotels in 2008 – 2017

For the last ten years, the average values of ROI ratio with downward trend were observed (Picture 9).

The ROI ratio is calculated as a ratio of net profit to sum of stockholder equity and long-term liabilities and shows the return from equity involved in commercial activities and long-term borrowed funds.

Picture 9. Change in average values of ROI ratio in 2007 – 2016

Assets turnover ratio is the ratio of sales revenue and company’s average total assets for a period. It characterizes the effectiveness of using of all available resources, regardless the source of their attraction. The ratio shows how many times per year the full cycle of production and circulation is performed, generating the corresponding effect in the form of profit.

For the last ten years, this business activity ratio demonstrated the downward trend (Picture 10).

Picture 10. Change in average values of assets turnover ratio of TOP-1000 companies in 2008 – 2017

Production structure
The largest share of ТОP-1000 total revenue is occupied by the enterprises engaged in activities of hotels and other places of temporary accommodation (Picture 11).

Picture 11. Distribution of activities in ТОP-1000 total revenue

73% of ТОP-1000 companies are registered in the Unified register of small and medium-sized enterprises of the Russian Federal Tax Service. Herein, in 2017 their share in TOP-1000 total revenue amounted to 35%, which is significantly higher than the average index for the country (Picture 12).

Picture 12. Shares of small and medium-sized enterprises in ТОP-1000, %

Main regions of activity
ТОP-1000 companies are unequally located across the country and registered in 77 regions of Russia. The largest enterprises in terms of revenue are located in Moscow and St. Petersburg (Picture 13).

Picture 13. Distribution of TOP-1000 revenue by Russian regions

Financial position score
An assessment of the financial position of TOP-1000 companies shows that more than a half of them have average financial position (Picture 14).

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

Solvency index Globas
Most of TOP-1000 companies got superior/high or strong/medium Solvency index Globas, this fact shows the ability of the companies to meet their obligations in time and fully (Picture 15).

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

Conclusion
A complex assessment of activity of the largest Russian hotels, taking into account the main indexes, financial ratios and indicators, demonstrates the presence of negative trends (Table 2).

Table 2. Favorable and unfavorable trends, assessment factors

Trends and assessment factors	Relative share, %
Growth/drawdown rate of average net assets value	-10
Increase / decrease in the share of enterprises with negative net assets	5
Growth/drawdown rate of average revenue	-10
Competition/ monopolization level	10
Growth/drawdown rate of average net profit (loss)	-10
Increase / decrease in average net profit of companies	10
Increase / decrease in average net loss of companies	5
Increase / decrease in average values of current liquidity ratio	-10
Increase / decrease in average values of ROI ratio	-10
Increase / decrease in average values of assets turnover ratio	-10
Share of small and medium-sized businesses by revenue more than 22%	10
Regional concentration	-10
Financial position (the largest share)	5
Solvency index Globas (the largest share)	10
Average value of factors	-1,1

— favorable trend (factor), — unfavorable trend (factor).