Information Agency Credinform has prepared the review of trends in activity of the largest companies of the real economy sector of Krasnodar region.

The largest enterprises (TOP-10 and TOP-1000) in terms of annual revenue were selected according to the data from the Statistical Register for the latest available periods (2014 – 2016). The analysis was based on data of the Information and Analytical system Globas.

Net assets

Indicator of real cost of corporate assets, which is annually calculated as the difference between assets of the company and its debt liabilities. If the company’s debts exceed net worth value, net assets indicator is considered negative (insufficiency of property).

^*) – growth/decline indicators in comparison with prior period are marked green and red in columns 4 and 5 respectively.

Picture 1. Change in average net assets value of the largest companies of the real economy sector of Krasnodar region in 2014 – 2016

Sales revenue

In 2016 total revenue of 10 largest companies amounted to 45% from TOP-1000 total revenue (Picture 2).

Picture 2. Shares of TOP-10 companies in TOP-1000 total revenue for 2016

The increase in sales revenue is observed (Picture 3).

Picture 3. Change in average revenue of the largest companies of the real economy sector of Krasnodar region in 2014 – 2016

Profit and loss

In 2016, profit of 10 largest companies amounted to 60% from TOP-1000 total profit (Picture 4).

Picture 4. Shares of TOP-10 companies in TOP-1000 total profit for 2016

For the three-year period, the average revenue values of TOP-1000 companies show the growing tendency and the average net loss decreases (Picture 5).

Picture 5. Change in average profit/loss of the largest companies of the real economy sector of Krasnodar region in 2014 – 2016

Main financial ratios

For – 2016 period the average values of current liquidity ratio of TOP-1000 were higher than recommended values – from 1,0 to 2,0 with the growing tendency (Picture 6).

Current liquidity ratio (ratio of total working capital to short-term liabilities) shows the sufficiency of company’s assets to meet short-term obligations.

Picture 6. Change in average values of current liquidity ratio of the largest companies of the real economy sector of Krasnodar region in 2014 – 2016

For the three-year period, the increasing tendency of ROI ratio is observed (Picture 7). The ROI ratio is calculated as a ratio of net profit to sum of stockholder equity and long-term liabilities and shows the return from equity involved in commercial activities and long-term borrowed funds.

Picture 7. Change in average values of ROI ratio of the largest companies of the real economy sector of Krasnodar region in 2014 – 2016

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.

For the three-year period, this business activity ratio demonstrated the downward trend (Picture 8).

Picture 8. Change in average values of assets turnover ratio of the largest companies of the real economy sector of Krasnodar region in 2014 – 2016

Production and services structure

The largest share in TOP-1000 total revenue take companies engaged in trade and production of petroleum products (Picture 9).

Picture 9. Distribution of activities in TOP-1000 total revenue, %

48% of TOP-1000 companies are registered in the Register of Small and Medium-Sized Business Entities of Federal Tax Service of the Russian Federation, among them 25% have status of medium-sized enterprises, 23% are classified as small enterprises.

Financial position score

The assessment of company’s financial position shows that more than a half of companies have stable or above average financial position (Picture 10).

Picture 10. Distribution of TOP-1000 companies by financial position score

Solvency index Globas

The majority of TOP-1000 companies have superior/high or strong/medium solvency index Globas, this fact shows the ability of the companies to meet their obligations in time and fully (Picture 11).

Picture 11. Distribution of TOP-1000 companies by solvency index Globas

Hereby, the complex assessment of the largest real economy companies of Krasnodar region, taking into account main indexes, financial ratios and indicators, demonstrates the denomination of favorable trends.

According to the Decree of the Government of Russia from 31.03.2018 № 386, banks are obliged to get national scale rating, as additional requirement for receiving guaranties from the tax authorities to secure the payment of taxes.

According to the officials, applying such credit ratings is one of the most important criteria for stability assessment of banks. In particular, levels of credit ratings «А» and «ruА» are rated as moderate levels with irrelevant acceptance to adverse changes of social and economic situation in Russia. Levels of credit ratings «ВВВ-" and «ruВВВ-" are valued as levels with insignificant probability of default.

In this regard, it is to be recalled that credit organizations act as guarantors towards tax authorities on fulfillment tax liabilities by tax payers to the full extent, including tax amount as well as penalties.

The Decree comes into force since May 3, 2018.

Currently, more than 120 banks have got the national scale credit rating. Meantime, according to the data of the Central Bank of the RF, 558 active credit organizations are registered in Russia on February 1, 2018.

The subscribers of the Information and Analytical system Globas can get the information about activities of banks andnon-bank credit institutions and their branches with active and revoked licenses.