Return on sales in fish trade

Information agency Credinform represents the ranking of the largest Russian wholesalers of fish and seafood. The trading 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 (for 2015 - 2017). Then they were ranked by return on sales ratio (Table 1). The analysis was made on the basis of the data of the Information and Analytical system Globas.

Return on sales (%) is calculated as the share of operating profit in the total sales of a company. The ratio reflects the efficiency of industrial and commercial activity of an enterprise and shows the share of company’s funds obtained as a result of sale of products, after covering its cost price, paying taxes and interest payments on loans.

The spread in values of the return of sales in companies of the same industry is determined by differences in competitive strategies and product lines.

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 the calculation of practical values of financial ratios that can be recognized as normal for a particular industry. For wholesalers of fish and seafood the practical value of the return on sales ratio made 2,74% in 2017.

For getting of the most comprehensive and fair picture of the financial standing of an enterprise it is necessary to pay attention to all combination of indicators and financial ratios.

Table 1. Net profit, revenue, return on sales ratio, solvency index Globas of the largest Russian wholesalers of fish and seafood (TOP-10)
Name, INN, region Revenue, million rubles Net profit (loss), million rubles Return on sales, % Solvency index Globas
2016 2017 2016 2017 2016 2017
1 2 3 4 5 6 7 8
INN 7819025427
up6840 down6458 up271 down242 up6,33 down5,63 208 Strong
INN 7701174512
up17592 up21426 up641 up688 down6,07 down5,36 175 High
INN 7743703239
In process of reorganization in the form of acquisition of other legal entities, 25.05.2016.
up7869 up8701 down20 down15 up3,38 down3,37 240 Strong
INN 7743632267
up4254 down4250 down7 up83 down0,72 up3,10 212 Strong
INN 7811445525
up6098 up6148 up168 down153 down2,57 up2,73 233 Strong
INN 7705360936
up9881 down4417 up60 down21 down-1,15 up1,46 233 Strong
INN 3905036023
Kaliningrad region
up8058 down7072 up87 down43 down1,43 down1,30 216 Strong
INN 7736544838
up3874 up4363 up41 up9 up1,56 down1,24 197 High
INN 5190908693
Murmansk region
up5526 up6829 up27 down-22 up0,81 down-0,04 283 Medium
INN 7722206719
Moscow region
up4714 up4757 up140 down-250 up3,78 down-2,55 296 Medium
Total by TOP-10 companies up74706 down74420 up1425 down982    
Average value by TOP-10 companies up7471 down7442 up143 down98 down2,55 down2,16
Industry average value up121 down110 up2 down2 down2,50 up2,74

Up — improvement of the indicator to the previous period, Down — decline in the indicator to the previous period.

The average value of the return on sales ratio of TOP-10 companies is below the industry average one and practical value. Three companies improved the result in 2017.

Picture 1. Return on sales ratio and revenue of the largest Russian wholesalers of fish and seafood (TOP-10) Picture 1. Return on sales ratio and revenue of the largest Russian wholesalers of fish and seafood (TOP-10)

The industry average indicators of the return on sales ratio have a downward trend over the course of 10 years (Picture 2).

Picture 2. Change in the industry average values of the return on sales ratio of Russian wholesalers of fish and seafood in 2008 – 2017 Picture 2. Change in the industry average values of the return on sales ratio of Russian wholesalers of fish and seafood in 2008 – 2017
The largest global IT companies

Today the IT market is rapidly changing; the leading positions are traditionally occupied by the American, Japanese and South Korean companies. China has joined the fray over leadership in one of the most high-tech spheres of human activity. The examples are such companies as Huawei or Alibaba (see table 1).

The paradox of the current moment is that non-market methods are used by the states with market-based economy to deter competitors – express prohibition of cooperation between multinational companies.

Thus, the U.S. Department of Commerce announced that Huawei Technologies and its 70 branches are included in Entity List on May 15, 2019. As a result, Huawei will not be able to buy spare parts and components from American manufacturers without approval of the US government.

Then Google stated that it would no longer supply the Android operating system to Huawei smartphones. The sold smartphones will remain without updates, including the trending Honor. Qualcomm (American manufacturer of chips) and ARM (British manufacturer of processors) are also informed about termination of cooperation with Huawei. Huawei will be able to overcome the negative consequences thanks to its own operating system and chips, the development of which is being successfully carried out.

Huawei produces every fifth smartphone in the world; it is already ahead of Apple and became the second manufacturer after Samsung. Seven years ago, the Chinese company occupied only three percent of the market. The growth of Huawei is a prime example of the Chinese national policy of technological superiority supported by the state.

The company has not only become a successful player in the consumer electronics market, but also become the largest manufacturer of telecommunications equipment. Huawei is aimed to be the flagman company in launching of 5G networks. The main competitors - Nokia and Ericsson are already seriously behind both in terms of equipment cost and market shares in most countries.

Great expectations are placed on 5G due to high speed and energy efficiency. This will allow to create the machine-to-machine communication systems: without 5G networks it is impossible to conduct a mass launch of self-driving vehicles, build smart cities and track a huge amount of data in real-time mode on industrial plants as well as in megalopolises. The 5G network will give the opportunities to manage the virtual objects simultaneously with other people.

The imposed USA restrictions will negatively influence on American IT corporations. The EU countries do not refuse to cooperate with Chinese partners. The market participants are thinking about reducing their dependence on American suppliers. New mobile operating systems and other computer architectures will be developed. In future, the US monopoly in IT industry will decline.

Table 1. The largest global IT companies with revenue over 50 billion USD
Position Company 2018 revenue, billion USD Headquarters
1 usa Apple Inc. $265,6 Cupertino, US
2 s_korea Samsung Electronics $221,6 Suwon, South Korea
3 usa Amazon $232,9 Seattle, US
4 tajvan Hon Hai Precision/Foxconn $150,3 New Taipei City, Taiwan
5 usa Alphabet Inc. (owner of Google) $136,8 Mountain View, US
6 usa Microsoft $110,4 Redmond, US
7 japan Nippon Telegraph and Telephone (NTT) $109,3 Tokyo, Japan
8 china Huawei $105,2 Shenzhen, China
9 usa Dell Technologies $90,6 Round Rock, TX, US
10 japan Hitachi $87,8 Tokyo, Japan
11 japan Sony $80,2 Tokyo, Japan
12 usa IBM $79,6 Armonk, NY, US
13 japan Panasonic $74,1 Osaka, Japan
14 usa Intel $70,8 Santa Clara, CA, US
15 china JD.com $67,2 Beijing, China
16 usa HP Inc. $58,5 Palo Alto, CA, US
17 china Alibaba $56,2 Hangzhou, China
18 usa Facebook $55,8 Menlo Park, U.S.
19 s_korea LG Electronics $51,8 Seoul, South Korea