Return on assets of water transport

Information agency Credinform represents a ranking of the largest Russian water transport companies. Sea and river transport companies 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 (2015 - 2017). Then companies were ranked by return on assets ratio (Table 1). The analysis is based on the data of the Information and Analytical system Globas.

Return on assets (%) is the relation of the sum of net profit and interest payable to the total assets value of a company. It shows how many monetary units of net profit gets every unit of total assets.

The ratio characterizes the effectiveness of using own resources by the company and its financial management. That is why the higher is the ratio value, the more effective is business, that is the higher return per every monetary unit invested in assets.

The experts of the Information agency Credinform, taking into account the actual situation both in the economy as a whole and in the sectors, has developed and implemented in the Information and Analytical system Globas рthe calculation of practical values of financial ratios that can be recognized as normal for a particular industry. For water transport companies the practical value of the return on assets ratio is from -4,11 in 2017.

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 assets ratio, solvency index Globas of the largest Russian water transport companies (TOP-10)

Name, INN, region, business scope	Revenue, bln RUB		Net profit (loss), bln RUB		Return on assets, (%)		Solvency index Globas
	2016	2017	2016	2017	2016	2017
1	2	3	4	5	6	7	8
VLADIVOSTOK SEA CONTAINER TERMINAL CO., LTD. INN 2537073208 Primorye territory Activity of sea freight transport	3,53	4,50	0,44	0,31	34,80	37,91	200 Strong
JSC ROSNEFTEFLOT INN 6501096047 Moscow Activity of sea freight transport	6,20	4,99	1,64	1,12	26,88	13,96	166 Superior
JSC VOLGA-SHIPPING INN 5260902190 Nizhniy Novgorod region Activity of inland water freight transport In process of reorganization in the form of merger of other legal entities since 28.06.2018	4,54	5,27	1,36	0,94	14,03	10,97	153 Superior
LLC SCF SHELF INN 7841472237 Saint Petersburg Activity of sea freight transport	2,89	6,92	0,35	0,36	18,56	10,47	200 Strong
JSC NORTH-WESTERN SHIPPING INN 7812023195 Saint Petersburg Activity of sea freight transport	6,99	7,01	0,40	0,74	5,12	10,04	164 Superior
LLC PRIME SHIPPING INN 6317060306 Samara region Activity of inland water freight transport	5,99	6,05	0,79	0,87	4,67	4,96	195 High
LLC GAZPROMNEFT SHIPPING INN 7805480017 Saint Petersburg Activity of sea freight transport	1,11	5,83	-0,99	0,74	-0,39	2,87	239 Strong
NAYADA CO., LTD INN 2508042212 Primorye territory Activity of sea freight transport	1,38	5,44	-0,03	0,03	-2,45	2,11	243 Strong
LLC NIKO INN 2538001527 Primorye territory Activity of sea freight transport	5,58	5,64	0,04	0,01	4,44	0,66	247 Strong
JSC LENA UNITED RIVER SHIPPING INN 1435029085 Republic of Sakha (Yakutia) Activity of inland water freight transport	4,82	5,34	0,03	0,04	0,35	0,42	192 High
Total for TOP-10 companies	43,03	56,98	4,94	5,16
Average value for TOP-10 companies	4,30	5,70	0,49	0,52	10,60	9,44
Industry average value	0,061	0,098	0,003	0,000	2,41	-0,03

— growth of indicator to the previous period, — decrease of indicator to the previous period.

The average indicator of return on assets ratio of TOP-10 companies is higher than recommended, industry average and practical one. In 2017, six companies of TOP-10 demonstrated the upside in comparison with the previous period.

Picture 1. Return on assets ratio and revenue of the largest Russian water transport companies (TOP-10)

Over the past 10 years, the industry average values of return on assets ratio have a trend to decrease (Picture 2).

Picture 2. Change in the industry average values of return on assets ratio of the largest Russian water transport companies in 2008 – 2017