Information agency Credinform has prepared a ranking of the Russian recruiting agencies. The largest enterprises (TOP-10 and TOP-100) in terms of annual revenue were selected according to the data from the Statistical Register and the Federal Tax Service for the available periods (2018-2020). Then the companies were ranged by profitability of sales ratio (Table 1). The analysis was based on the data from the Information and Analytical system Globas.

Profitability of sales (%) is the share of operating profit in the sales volume of the company. The ratio characterizes the efficiency of the industrial and commercial activity and shows the company’s funds, which remained after covering the cost of production, interest and tax payments.

The rage of ratio’s values within companies of the same industry is defined by the differences in competitive strategies and product lines.

The calculation of practical values of financial indicators, which might be considered as normal for a certain industry, has been developed and implemented in the Information and Analytical system Credinform by the experts of Information Agency Globas, taking into account the actual situation of the economy as a whole and the industries. The practical value of profitability of sales ratio for the recruiting agencies is from 0,62 to 17,56%%.

For the most full and fair opinion about the company’s financial position, the whole set of financial indicators and ratios of the company should be taken into account.

Table 1. Net profit, revenue, return on assets, solvency index Globas of the recruiting agencies (ТОP-10)

Name, INN, region	Revenue, million RUB		Net profit (loss), million RUB		Return on assets, %		Solvency index Globas
	2019	2020	2019	2020	2019	2020
1	2	3	4	5	6	7	8
LLC AVANTA SOLUTONS INN 7707309438 Moscow	1 913,0	1 561,7	76,7	61,6	4,03	4,25	184 High
LLC EMPLOYMENT AGENCY MANPOWER INN 7714364630 Moscow	1 451,4	884,6	2,3	3,3	2,52	3,05	229 Strong
BUSINESS PROCESS COMPANY LIMITED INN 7842450613 St.Petersburg	643,0	673,6	2,6	4,7	-35,41	3,03	228 Strong
HAYS SPECIALIST RECRUITMENT LIMITED LIABILITY COMPANY INN 7704720488 Moscow	761,4	702,8	35,2	11,0	6,49	1,69	228 Strong
LLC MPH VOSTOK INN 7708650841 Moscow	325,5	750,5	4,6	4,4	3,10	0,69	189 High
LLC BIN-PERSONAL INN 6376025977 Samara Region	803,7	542,3	0,5	1,5	0,19	0,62	272 Medium
LLC COLEMAN SERVICES INN 5019016123 Moscow	337,1	2 489,0	-2,5	2,8	-0,97	0,41	247 Strong
LLC GK CITY INN 1832145345 Udmurt Republic	807,1	1 758,4	0,4	0,8	0,18	0,11	261 Medium
LLC Kelly Services CIS INN 7710284310 Moscow	6 185,0	6 748,5	26,6	117,2	0,71	0,18	192 High
CITYSTAFF LLC INN 1659134777 Moscow	1 398,3	1 393,2	3,1	0,0	-0,30	-0,62	266 Medium
Average value for TOP-10 companies	1 462,5	1 750,5	15,0	20,7	-1,95	1,31
Average value for TOP-100 companies	345,2	337,2	7,0	9,9	4,30	5,71
Average industry value	29,3	22,6	1,7	0,7	7,19	3,89

growth of indicator in comparison with prior period, decline of indicator in comparison with prior period

In 2020, the average values of profitability of sales for TOP-10 companies is lower and for TOP-500 is higher than the industry average values, they are within the practical values. In 2020 and 2019, two and three companies respectively showed the negative results. In 2020, five companies demonstrated the decline in indicators, in 2019 there were seven companies like this.

At the same time, in 2020, five companies showed the increase in revenue and seven companies demonstrated the increase in net profit.

The TOP-10 average revenue increased by almost 20%, the decrease in TOP-100 ratio amounted to 2%, and the industry average value decreased by almost 23%

The TOP-10 average profit increased by 28%, TOP-100 by 41%, however, the industry average value decreased by 13 times.

In general, during the last 5 years, the growth of average industry indicators of profitability of sales ratio was observed twice. The ratio reached its highest values in 2018, and the worst result is shown in 2016 (Picture 1).

Picture 1. Change in average industry values of profitability of sales of the recruiting agencies in 2016 – 2020

Information agency Credinform represents a review of activity trends among the companies in Nizhniy Novgorod.

The largest companies with the highest annual revenue (TOP 1000) were selected for the ranking, according to the data from the Statistical Register and the Federal Tax Service for the latest available periods (2016 – 2020). The selection and analysis of companies were based on the data of 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 term of net assets is JSC TRANSNEFT-VERKHNYAYA VOLGA, INN 5260900725, oil pipeline transportation. In 2020, net assets value of the company almost exceeded 142 billion RUB.

The lowest net assets value among TOP 1000 belonged to LLC HYGIENE TECHNOLOGIES, INN 5261058974, production of paper products for household and sanitary purposes. In 2020, insufficiency of property of the enterprise was indicated in negative value of -2,4 billion RUB.

Covering the five-year period, the average net assets values of TOP 100 have a trend to increase with the decreasing growth rate (Picture 1).

Picture 1. Change in average net assets values in 2016 – 2020

Over the past five years, the share of companies with insufficient property had a positive trend to decrease (Picture 2).

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

Sales revenue
In 2020, the revenue volume of ten largest companies was near 45% of total TOP 1000 revenue (Picture 3). This is indicative of a high level of capital concentration among companies in Nizhniy Novgorod.

Picture 3. The share of TOP 10 companies in total 2020 revenue of TOP 1000

In general, there is a trend to increase in revenue with the decreasing growth rate (Picture 4).

Picture 4. Change in average revenue in 2016 – 2020

Profit and loss
КIn 2020, the largest organization in term of profit was JSC ATOMSTROYEKSPORT, INN 7701186067, activities of the customer-developer, general contractor. The company’s profit exceeded 24 billion RUB. Covering the five-year period, there is a trend to increase in average net profit and growth rate (Picture 5).

Picture 5. Change in average profit (loss) values of TOP 1000 in 2016 – 2020

For the five-year period, the average profit of TOP 1000 had the increasing trend with the increasing net loss (Picture 6).

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

Key financial ratios
Covering the five-year period, the average values of the current liquidity ratio 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 industry average values of current liquidity ratio of TOP 1000 in 2016 – 2020

Covering the five-year period, the average values of ROI ratio were at the relatively high level with a trend to decrease (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 industry 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.

Covering the five-year period, business activity ratio demonstrated the decreasing trend (Picture 9).

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

Small business
75% of companies of TOP 1000 are registered in the Register of small and medium-sized enterprises of the Federal Tax Service of the Russian Federation. In 2020, their share in total revenue of TOP 1000 is 16,7%, lower than the average country values in 2018-2019 (Picture 10).

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

Financial position score
Assessment of the financial position of TOP 1000 companies shows that the financial position of the majority of them is above average (Picture 11).

Picture 11. Distribution of TOP 1000 companies by financial position score

Solvency index Globas
Most of TOP 1000 companies got Superior / High and Strong / Medium indexes Globas. This fact shows their limited ability to meet their obligations fully (Picture 12).

Picture 12. Distribution of TOP 1000 companies by solvency index Globas

Conclusion
Complex assessment of activity of largest companies in Nizhniy Novgorod, taking into account the main indexes, financial ratios and indicators, demonstrates the prevalence of positive trends in their activities 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 (decrease) in the average size of net assets	-10
Increase (decrease) in the share of enterprises with negative values of net assets	10
Level of competition / monopolization	-10
Dynamics of the average revenue	10
Rate of growth (decrease) in the average size of revenue	-10
Dynamics of the average profit (loss)	10
Rate of growth (decrease) in the average profit (loss)	10
Growth / decline in average values of companies’ net profit	10
Growth / decline in average values of companies’ net loss	-10
Increase / decrease in average values of total 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
Financial position (the largest share)	10
Solvency index Globas (the largest share)	10
Average value of relative share of factors	2,2

positive trend (factor) , negative trend (factor)