Information agency Credinform presents a review of the activity trends of companies with 100% foreign capital.

The largest companies (TOP-1000) in terms of annual revenue were selected for the analysis according to the data from the Statistical Register and the Federal Tax Service for the latest available accounting periods (2016 – 2020). The selection of companies and the analysis were based on the data from the Information and Analytical system Globas.

Net assets are total assets less total liabilities. This indicator reflects the real value of the property of an enterprise. When the company’s debt exceeds the value of its property, the indicator is considered negative (insufficiency of property).

The largest company in terms of net assets is JSC MCC EUROCHEM, INN 7721230290, Moscow, engaged in financial industrial group management activities. In 2020, net assets value amounted to almost 361 billion RUB.

The lowest net assets value among TOP-1000 was recorded for LLC TOMET, INN 6382018657, Samara region, engaged in manufacture of other basic organic chemical substances, the legal entity is declared insolvent (bankrupt) and bankruptcy proceedings are initiated since 09.03.2021. In 2020, insufficiency of property was indicated in negative value of -77 billion RUB.

During five-year period, the average net assets values of TOP-1000 have a trend to increase with the decreasing growth rates (Picture 1).

Picture 1. Change in average net assets value in TOP-1000 in 2016 - 2020

The shares of TOP-1000 companies with insufficient property had positive trend to decrease during last 5 years (Picture 2).

Picture 2. Shares of TOP-1000 companies with negative net assets values in 2016 - 2020

Sales revenue
The revenue volume of TOP-10 amounted to almost 20% of the total revenue of TOP-1000 companies in 2020 (Picture 3). It gives evidence to the low level of capital concentration among companies with 100% foreign capital.

Picture 3. Shares of TOP-10 companies in the total revenue of TOP-1000 in 2020

In general, there is a trend to increase in revenue with the declining of growth rates (Picture 4).

Picture 4. Change in average revenue of TOP-1000 in 2016 – 2020

Profit and loss
The largest TOP-1000 company in term of net profit in 2020 is JSC EVRAZ NIZHNY TAGIL METALLURGICAL PLANT, INN 6623000680, Sverdlovsk region, engaged in manufacture of crude iron, ferroalloy, steel. The company’s profit amounted to more than 65 billion RUB.

During five-year period, the average profit figures of TOP-1000 have a trend to increase with decreasing growth rates (Picture 5).

Picture 5. Change in average profit (loss) of TOP-1000 companies in 2016 - 2020

In the last five years, the average net profit figures of TOP-1000 companies increase with the increasing average net loss (Picture 6).

Picture 6. Change in average net profit and net loss of ТОP-1000 companies in 2016 – 2020

Key financial ratios
During five-year period, the average values of the current liquidity ratio of TOP-1000 companies were above the recommended one – from 1,0 to 2,0, with a trend to increase. (Picture 7).

Current liquidity ratio (current assets to short-term liabilities) shows the sufficiency of company’s assets to repay on short-term liabilities.

Picture 7. Change in average values of current liquidity ratio of TOP-1000 in 2016 – 2020

During five years, there was a trend to increase in the average ROI values of TOP-1000 companies (Picture 8).

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

Picture 8. Change in average values of ROI ratio of TOP-1000 in 2016 – 2020

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.

During the five-year period, there was a trend to decrease of this ratio (Picture 9).

Picture 9. Change in average values of assets turnover ratio of TOP-1000 companies in 2016 – 2020

Small enterprises
1,2% companies of TOP-1000 are registered in the Register of small and medium-sized enterprises of the Federal Tax Service of the Russian Federation. However, their share in total revenue of TOP-1000 in 2020 amounted to only 0,2%, which is significantly lower than the average country values in 2018 - 2019 (Picture 10).

Picture 10. Shares of small and medium-sized enterprises in TOP-1000

Main regions of activity
Companies of TOP-1000 are registered in 68 regions of Russia, and unequally located across the country. Almost 68% of the TOP-1000 companies’ total revenue for 2020 consolidate in Moscow and Moscow region (Picture 11).

Picture 11. Distribution of TOP-1000 revenue by the regions of Russia

Financial position score
According to the assessment, the financial position of TOP-1000 companies is above average (Picture 12).

Picture 12. Distribution of TOP-1000 companies by financial position score

Solvency index Globas
Most of TOP-1000 companies got Superior / High and Strong / Medium index Globas. This fact shows their ability to meet their obligations fully and by the due date (Picture 13).

Picture 13. Distribution of TOP-1000 companies by solvency index Globas

Conclusion
Complex assessment of activity of the companies with 100% foreign capital, taking into account the main indexes, financial ratios and indicators, demonstrates the prevalence of positive trends in their activity in 2016- 2020 (Table 1).

Table 1. Positive and negative trends, evaluation factors

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	10
Level of capital concentration	10
Dynamics of the average revenue	10
Rate of growth (decline) in the average size of revenue	-10
Dynamics of the average profit (loss)	10
Rate of growth (decline) in the average size of profit(loss)	-10
Growth / decline in average values of net profit	10
Growth / decline in average values of net loss	-10
Increase / decrease in average values of current 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
Regional concentration	-10
Financial position (the largest share)	10
Solvency index Globas (the largest share)	10
Average value of relative share of factors	1,5

positive trend (factor), negative trend (factor)

Information agency Credinform represents a ranking of the largest Russian road construction companies in Moscow. Companies with the largest volume of annual revenue (TOP 10 and TOP 50) were selected for the ranking, according to the data from the Statistical Register and the Federal Tax Service for the latest available periods (2018 - 2020). They were ranked by the return on the authorized capital (Table 1). The selection and analysis were based on the data of the Information and Analytical system Globas.

Return on the authorized capital (%) indicates the efficiency of the authorized capital use and shows the amount of net profit accounting for one rouble of the authorized capital.

The higher is the indicator, the more efficient is the usage of capital contributed to the authorized fund. However, it is necessary to consider that too high values, exceeding in several times the average values for economy or sector may indicate low authorized capital at higher net profit.

For the most complete and objective view of the financial condition of the enterprise, it is necessary to pay attention to the complex of indicators and financial ratios of the company.

Table 1. Net profit, revenue, return on the authorized capital and solvency index Globas of the road construction companies in Moscow (TOP 10)

Name, INN	Revenue, billion RUB		Net profit (loss), billion RUB		Return on the authorized capital, %		Solvency index Globas
	2019	2020	2019	2020	2019	2020
1	2	3	4	5	6	7	8
JSC DSK AVTOBAN INN 7725104641	47,17	32,60	2,26	7,73	2 257 093	7 732 376	208 Strong
LLC CONCESSION CONSTRUCTION COMPANY No. 1 INN 9729021990	25,24	43,04	4,46	6,15	4 456 489	6 148 273	264 Medium
JSC FOR CONSTRUCTION AND RECONSTRUCTION OF ROADS AND AERODROMES INN 6163002069	7,49	11,61	0,92	1,22	3 679 804	4 886 008	195 High
LLC DORTEKH INN 7728346960	2,55	6,04	0,04	0,25	415 500	2 465 110	222 Strong
JSC TSENTRDORSTROI INN 7702059544	13,10	13,68	0,04	0,23	192 217	999 643	205 Strong
LLC KOLTSEVAYA MAGISTRAL INN 5032273017	4,52	8,70	0,04	0,05	400 720	532 370	295 Medium
LLC IBT INN 7704818388	8,86	14,13	0,25	0,78	2 497	7 842	228 Strong
LLC RUS-STROI INN 7707766346	3,72	5,46	0,04	0,06	129	412	239 Strong
JSC MOSTOTREST INN 7701045732	77,30	65,74	1,73	-1,99	4 384	-5 027	297 Medium
LLC TRANSSTROIMEKHANIZATSIYA INN 7715568411	63,06	56,86	0,70	-4,47	7 045 370	-44 709 540	299 Medium
Average value for TOP 10	25,30	25,79	1,05	1,00	1 845 420	-2 194 253
Average value for TOP 50	6,83	6,61	0,27	0,16	588 451	-261 222
Average industry value	0,19	0,20	0,001	4	44

growth of indicator to the previous period, fall of indicator to the previous period

The industry average values of the return on the authorized capital is significantly above the industry average ones of TOP 10 and TOP 50. Two companies of TOP 10 had negative values of the indicator and reduced their figures in 2020. In 2019, the fall was recorded for five companies.

In 2020, seven companies included in TOP 10 gained revenue and five legal entities gained net profit. In general, the revenue of TOP 10 climbed at average 2%, and a 3% decrease was recorded in TOP 50. There was a 5% increase in the industry average indicator.

There was a 5% and 41% decrease in profit of TOP 10 and TOP 50 respectively. The industry average profit climbed 3 times.

Over the past five years, the industry average values of the return on the authorized capital have increased over three periods. The highest value was recorded in 2020 and the lowest one was in 2019 (Picture 1).

Picture 1. Change in the industry average values of the return on the authorized capital in 2016 - 2020