Information agency Credinform represents the ranking of the largest Russian hostels. Hostels – legal entities with the largest volume of annual revenue (TOP-10) were selected for the ranking, according to the data from the Statistical Register for the latest available periods (for 2016 - 2018). Then they were ranked by the return on equity ratio (Table 1). The analysis was made on the basis of the data of the Information and Analytical system Globas.

Return on equity (%) is calculated as a relation of company’s net profit to its equity. The ratio determines the efficiency of use of capital invested by the owners of the enterprise and shows how many monetary units of net profit were earned by each unit invested by owners.

This indicator is used by investors and company’s owners to measure their own investment. The higher the ratio value, the more profitable the investment. By the return on equity with a negative or zero value it is necessary to analyze the advisability and efficiency of investment in the enterprise in the future. In such cases, the ratio value should be compared with other investment.

Too high value of the indicator, in its turn, can negatively affect the financial stability of a company. High profitability implies also higher risks.

For getting of the most comprehensive and fair picture of the financial standing of an enterprise it is necessary to pay attention to all combination of company’s financial indicators and ratios.

Таблица 1. Net profit, revenue, return on equity ratio, solvency index Globas of the largest hostels (TOP-10)

Name, INN, region	Sales revenue, mln RUB		Net profit (loss), mln RUB		Return on equity, %		Solvency index Globas
	2017	2018	2017	2018	2017	2018
1	2	3	4	5	6	7	8
DRUZYA-OTELI I KHOSTELY LLC INN 7842074140 Saint-Petersburg	22,85	22,57	5,47	3,94	-153,23	998,98	274 Medium
OKEI KHOSTELGRUPP LLC INN 7713389343 Moscow	21,66	26,94	0,89	2,48	82,08	69,49	243 Strong
SET UYUTNYKH KVARTIR,OBSHCHEZHITII I KHOSTELOV UYUT LLC INN 7841491060 Saint-Petersburg	18,82	22,06	-1,60	-3,08	25,60	33,01	346 Adequate
PLANETA KHOSTEL LLC INN 7705557749 Moscow	27,33	37,94	3,22	1,01	124,72	28,16	262 Medium
HOSTEL-S LLC INN 7702375797 Moscow	26,71	28,28	2,11	1,60	28,56	18,14	272 Medium
HOSTEL-A NJSC INN 7720791790, Moscow is in the process of reorganization in the form of transformation, since 09.06.2017	10,15	17,81	-5,83	0,29	33,39	-1,66	306 Adequate
SET KHOSTELOV ZAKHODI LLC INN 7743111955 Moscow	17,63	20,45	-2,85	0,84	8,36	-2,52	307 Adequate
KHOSTELSERVIS LLC INN 7726053654 Moscow	20,63	30,26	-0,64	0,89	3,73	-5,57	298 Medium
SUPERHOSTEL LLC INN 7842504932 Saint-Petersburg	137,53	118,65	7,53	-1,03	118,02	-18,95	253 Medium
SWEET VILLADGE HOSTEL LLC INN 7840033501 Saint-Petersburg	16,03	19,14	1,57	-0,63	83,97	-50,77	300 Adequate
Total by TOP-10 companies	319,34	350,08	9,88	6,31
Average value by TOP-10 companies	31,93	35,01	0,99	0,63	35,52	106,83
Industry average value	33,17	38,79	-12,74	-4,65	3 388,74	1 229,76

improvement of the indicator to the previous period, decline in the indicator to the previous period.

The average value of the return on equity ratio of TOP-10 companies in 2018 is significantly lower than the average value for the hotel services industry. Two companies improved results in 2018.

Picture 1. Return on equity ratio and revenue of the largest hostels (TOP-10)

Over 10 years, the average values of the return on equity ratio in the hotel services industry have a tendency to increase. (Picture 2).

Picture 2. Change in industry average values of the return on equity ratio of hotel facilities in 2009 – 2018

In the countries with the modern economic structure, over 50% of work force is employed in small and medium-sized enterprises. In Russia, this figure is 22%. In 2018, the share of small business in total revenue of companies (including large) was 27,9%.

Contribution of small companies to the GDP is obviously insufficient. Russia is still the country of large corporations and monopoly, and therefore there are artificially high prices and lack of fair competition.

The Government is seeking to bring the GDP share in the economy to the level of developed countries up to 2025. However, there are already regions in Russia with the regional GDP financing mainly by small and medium-sized business.

The Republic of Dagestan with small business’ total share of 75,7% is ranked the first. This fact is due to the traditional economy of the region, where the population is involved in personal subsidiary economy and handicraft industry. Large business is slightly spread because of unavailability of rich natural recourses and effective demand. The similar situation prevails in neighboring North Caucasus republics (see Table 1).

TOP-10 also includes Ivanovo region (72,5%), Sevastopol (65,3%), Kirov region (56%) and Zabaikalye territory (55,5%).

Despite the high share of small business in the leading regions, the absolute contribution of small business is minimal: 1,7 trillion RUB compared to 59,9 trillion RUB for the whole country.

Source: ЕМИСС, Unified interdepartmental statistical information system, Rosstat, calculations of Credinform based on the System Globas

The highest turnover of small business in absolute figures is recorded for Moscow - 16,7 trillion in 2018. However, the share of small business in total turnover of companies slightly exceeded 25%.

Novosibirsk region is ranked the fourth with the highest share of small business in the regional economy – 50,5% (see Picture 1).

Рисунок 1. Small business’ share in the regions with the highest turnover of small and medium-sized business

The priority is to increase the contribution of small business to the GDP, and it is involved stable and continued development of the economy, fair competition and entering new selling markets. However, lack of plans to reduce the tax burden, cancellation of single tax on imputed income from 2021, huge fiscal injections to the large state-owned companies to the detriment of small companies – all these call into question the achievement of the goal.