Current ratio of auto dealers

Information agency Credinform offers to get acquainted with the ranking of Russian auto dealers. The companies with the highest volume of revenue involved in this activity were selected by the experts according to the data from the Statistical Register for the latest available period (for the year 2013). Then, the first 10 enterprises selected by turnover were ranked by decrease in current ratio.

Current ratio measures company’s ability to discharge its short-term liabilities and shows, what part of current assets will be taken by the settlement of debts. This indicator is calculated as the relation of the sum of current assets of an enterprise to its short-term liabilities and allows investors to estimate an expected business performance, probability of insolvency, bankruptcy. Recommended values: from 2,0 to 3,0.

Current ration and solvency index of the largest Russian auto dealers, TOP-10
Name, INNRegionTurnover 2013, in mln RUBCurrent ratio, (х)Solvency index GLOBAS-i®
1 Yaguar lend Rover LLC
INN 5047095543
Moscow 57 586 3,28 204 (high)
2 Honda Motor Rus LLC
INN 7710529289
Moscow 30 851 2,87 181 (the highest)
3 Kia Motors Rus LLC
INN 7728674093
Moscow 121 748 1,9 229 (high)
4 Rolf LLC
INN 5047059383
Moscow region 67 970 1,78 227 (high)
5 Hende Motor SNG LLC
INN 7703623202
Moscow 111 569 1,59 207 (high)
6 Avilon Avtomobilnaya gruppa CJSC
INN 7705133757
Moscow 46 080 1,54 201 (high)
7 Man Trak End Bas Rus LLC
INN 7730117815
Moscow 29 947 1,44 254 (high)
INN 7715397999
Moscow 72 038 1,33 182 (the highest)
9 Mersedes-Bents Rus CJSC
INN 7707016368
Moscow 120 056 1,17 240 (high)
10 BMV Rusland Treyding LLC
INN 7712107050
Moscow 80 774 1,07 243 (high)

Russian car market goes through hard times today: since June of the current year the market has been topping all new anti-record levels of sales volume. So that, for 9 months 2014 it was sold slightly less than 2 mln new cars in Russia, what is by 12,7% less than for the similar period of the current year.

However, in October the situation in the market has become a little better: at the end of October the sales volume has reduced by 9,9% (in comparison with October of the year 2013), what is a good result after the fall in September by 20,1%, and in August – by 25,8%. The experts explain good results of October sales by entering into force of a new scrappage program.

As a reminder, the new scrappage program has been working since the 1st of September 2014, according to which a car owner may not only get its vehicle scrapped, but also may use the trade-in mechanism (scrap an old car in payment for a new one). By participation in the scrappage program an owner receives a discount for purchase of a new car. At the beginning of the action the great majority of clients have preferred to scrap cars. But now the experts notice a sustainable growth in the trade-in segment. For October the amount of dealer centers jointed the active scrappage program has increased by 50% and exceeded 2 500, the list of manufacturers is also increasing.

auto dealers russia

Current ratio of auto dealers, TOP-10

Summing up the results of the represented ranking it should be noted, that only one company Honda Motor Rus LLC showed the current ratio value being as per current standards. The company got the highest index GLOBAS-i®, what characterizes it as financially stable one.

Yaguar Lend Rover LLC takes the first place of the ranking with the current ratio value 3,28%, what is more than the recommended value, because current assets exceed significantly the short-term liabilities. By that the largest share of current assets is accounted for by cash and debt receivable, i.e. liquid current assets. What can testify to a positive result for the given company, and is confirmed by a high solvency index GLOBAS-i®.

The rest companies of the ranking showed the current assets values being below the recommended values, because current assets exceed slightly the short-term liabilities. But by that all enterprises got a high and the highest index GLOBAS-i®. Now therefore, the fact is confirmed once again, that for a full assessment of company’s financial stability a comprehensive approach is of necessity, and an assessment given by relying just only on one indicator will be biased one.


It will be possible to see industrial parks on the map

The Ministry of Industry and Trade of the Russian Federation is considering of creating a geographic information mapping system of industrial parks in Russia. Nowadays, there is over a hundred of such sites most of which form the Association of Industrial Parks.

Industrial park is a real estate facility complex ruled by a single operator (specialized holding company), consisting of the land plot or plots with the production, administration, warehouse and other spaces and facilities provided with energy sources, engineering and transport infrastructure and administrative law conditions for the siting of new operating departments.

The Ministry tends to introduce new technologies in management processes. In this case, the suggested idea of emap with the help of which investors will be able to find full information of each object and the conditions of siting in should be considered. According to their plans, the Unified Geographic Information System of Industrial Parks (GISIP) should start working in 2016.

A portal with the input, storage, systematization, analysis and graphical rendering system on a map of spatial data and related information should be the final output. As it is envisioned, the user should get detailed information according to its request on the investment sites suitable for him. That includes information about engineering infrastructure, distribution areas close to it and so on.

However, the experience has shown that such projects in the Russian Federation like GIS can be successfully implemented if there is an external operator of such system. Generally, these products for Ministries are non-core activity category and the updating of this system can come to formality on leftovers.

So, it would be logical to consider the practical activity of the Association of Industrial Parks, which already has the map in its portal showing the main characteristics of the investment parks forming it.