Accounts receivable of light industry

Information agency Credinform has prepared a ranking of light industry enterprises in Russia. The manufacturers of textile, clothes, leather goods. (TOP-10) with the largest annual revenue were selected for the ranking, according to the data from the Statistical Register and the Federal Tax Service for the latest available accounting periods (2017 - 2019). Then the enterprises were ranked by the accounts receivable turnover (Table 1). The analysis was based on the data from the Information and Analytical system Globas.

Accounts receivable turnover (days) is calculated as a ratio of the accounts receivable average value for a period to sales revenue. The ratio shows how many days it takes for an enterprise to pay off the average sum of its accounts receivable.

The indicator reflects the procedure of satisfaction of liablilities to contractors. It is calculated for cash flow assesment, that gives an opportunity to make conclusions on company’s working efficiency and the chosen financial strategy.

The lower the indicator is, the faster an enterprise settles accounts with suppliers. The increase of turnover indicates both the problems with payment of accounts, and more effective organization of relations with suppliers, providing more profitable and well-managed payment schedule and using accounts receivable as a source of cheap financial resources.

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.

Net profit, revenue, accounts receivable turnover, solvency index Globas of the largest light industry enterprises in Russia (TOP-10)

Name, INN, region	Revenue, million RUB		Net profit (loss), million RUB		Accounts receivable turnover, days		Solvency index Globas
	2018	2019	2018	2019	2018	2019
1	2	3	4	5	6	7	8
JSC GLORIA JEANS CORPORATION INN 6166034397 Rostov region	37 553,1	37 719,2	1 280,8	927,3	18,74	20,56	262 Medium
PV OOO FIRMA TECHHNOAVIA INN 7724152603 Moscow	15 467,6	16 719,9	1 855,9	1 433,7	21,95	22,86	184 High
LLC AVGOL INN 7116128972 Tula region	4 210,4	4 631,2	-427,1	762,8	23,75	26,25	250 Medium
AO FPG ENERGOKONTRAKT INN 7703268269 Moscow	6 221,9	6 728,2	268,9	212,7	32,98	30,43	207 Strong
NJSC Ralf Ringer INN 7718160370 Moscow	5 943,4	5 752,3	-107,6	-281,9	53,95	51,88	293 Medium
LLC MIRTEX INN 3702644450 Ivanovo region	3 306,1	4 400,2	207,2	581,0	81,06	52,47	187 High
TDL TEXTILE, LLC. INN 3730010504 Ivanovo region	9 749,4	9 723,7	614,2	378,4	17,38	58,01	261 Medium
Company Limited BELLA INN 5011021499 Moscow region	7 411,2	8 463,4	225,6	491,1	62,65	61,83	165 Superior
LLC AVANGARD INN 7826741774 Leningrad region	7 533,2	8 730,6	151,8	167,4	68,63	78,68	213 Strong
OOO PROMKOMPLEKTATSIYA INN 7721624833 Moscow region	11 555,9	11 775,5	170,4	151,7	69,41	81,57	241 Strong
Average value for TOP-10	10 895,2	11 464,4	424,0	482,4	45,05	48,45
Average value for TOP-1000	379,4	390,9	17,3	16,3	116,05	124,10

improvement compared to prior period, decline compared to prior period

Average value of accounts receivable turnover of TOP-10 is lower than the average TOP-1000 value. Four companies have the standard value in 2019 comparing to the previous period.

Picture 1. Accounts receivable turnover and revenue of the largest light industry enterprises in Russia (TOP-10)

During 6 years the average industry values of accounts receivable turnover had a trend to increase. (Picture 2)

Picture 2. Change in average values of accounts receivable turnover of TOP-1000 light industry enterprises in Russia in 2014 – 2019