Information agency Credinform represents an overview of activity trends of the largest companies of the real sector of the economy in the Chechen Republic.

The republican companies with the largest volume of annual revenue (TOP-500) were selected for the analysis, according to the data from the Statistical Register for the latest available periods (for 2012-2017). The analysis was made on the basis of the data of the Information and Analytical system Globas.

Net assets value is an indicator, reflecting the real value of the property of an enterprise, is calculated annually as the difference between assets on the balance sheet of the enterprise and its debt obligations. The indicator of net assets is considered negative (insufficiency of property), if company’s debt exceeds the value of its property.

The largest company of the Chechen Republic in terms of net assets is SITI-STROI LLC . Its net assets amounted to more than 7,2 billion rubles in 2017.

The smallest size of net assets in TOP-500 enterprises was owned by GAZPROM MEZHREGIONGAZ GROZNY LLC. Insufficiency of assets of this company was expressed by a negative value -74,4 billion rubles.

Over a five-year period, the indicators of the average size of net assets of TOP-500 companies were expressed by negative values with a downtrend (Picture 1).

Picture 1. Change in the average indicators of the net assets value of TOP-500 enterprises in 2013 – 2017

The shares of TOP-500 enterprises with insufficiency of assets have a tendency to decrease in the last five years (Picture 2).

Picture 2. Shares of enterprises with negative values of net assets in TOP-500

Sales revenue
The revenue volume of 10 leading regional companies made 52% of the total revenue of TOP-500 in 2017 (Picture 3). It points to a high level of industrial concentration in the Chechen Republic.

Picture 3. Shares of participation of TOP-10 companies in the total revenue of TOP-500 enterprises for 2017

In general, there is a trend towards an increase in revenue volume (Picture 4).

Picture 4. Change in the average revenue of TOP-500 enterprises in 2013 – 2017

Profit and losses
The largest company of the Chechen Republic in terms of net profit is GAZPROM GAZORASPREDELENIE GROZNY NJSC. Company's profit amounted to 584 million rubles in 2017.

n general, there is a tendency to increase the average size of loss in TOP-500 over the five-year period (Picture 5).

Picture 5. Change in the average values of profit (loss) of TOP-500 enterprises in 2013 – 2017

Over a five-year period, the average values of net profit’s indicators of TOP-500 companies tend to increase insignificantly, while the value of net loss also increases. (Picture 6).

Picture 6. Change in the average values of indicators of net profit and net loss of TOP-500 companies in 2013 – 2017

Key financial ratios
Over the five-year period the average indicators of the total liquidity ratio of TOP-500 enterprises were above the range of recommended values - from 1,0 up to 2,0, with a tendency to increase (Picture 7).

The total liquidity ratio (the relation of the amount of current assets to short-term liabilities) shows the sufficiency of company’s funds for repayment of its short-term liabilities.

Picture 7. Change in the average values of the total liquidity ratio of TOP-500 enterprises in 2013 –

There has been a very high level of average values of the return on investment ratio for five years, with a tendency to increase. (Picture 8).

The ratio is calculated as the relation of net profit to the sum of own capital and long-term liabilities and demonstrates the return on the equity of own capital involved in the commercial activity and the long-term borrowed funds of an organization.

Picture 8. Change in the average values of the return on investment ratio of TOP-500 enterprises in 2013 – 2017

Asset turnover ratio is calculated as the relation of sales proceeds to the average value of total assets for a period and characterizes the efficiency of use of all available resources, regardless of the sources of their attraction. The ratio shows how many times a year a complete cycle of production and circulation is made, yielding profit.

This ratio of business activity showed a tendency to increase over the five-year period (Picture 9).

Picture 9. Change in the average values of the asset turnover ratio of TOP-500 enterprises in 2013 – 2017

Small business
47% of TOP-500 companies are registered in the Register of small and medium-sized enterprises of the Federal Tax Service of the RF. At the same time, their share in the total revenue of TOP-500 companies amounts to 23,7%, that is higher than the national average (Picture 10).

Picture 10. Shares of proceeds of small and medium-sized enterprises in TOP-500 companies

Main regions of activity
The TOP-500 enterprises are registered in 18 districts and inhabited localities of the Republic and are distributed unequal across the territory. Almost 86% of the revenue volume of TOP-500 companies are concentrated in the republican center – Grozny, Gudermes and Shali districts (Picture 11).

Picture 11. Distribution of the revenue of TOP-500 companies by regions of the Chechen Republic

Financial position score
An assessment of the financial position of TOP-500 companies shows that more than half of them are in average financial position. (Picture 12).

Picture 12. Distribution of TOP-500 companies by financial position score

Solvency index Globas
The largest part of TOP-1000 companies got Superior/High or Strong/Medium Solvency index Globas, that points to their ability to pay off their debts in time and fully (Picture 13).

Picture 13. Distribution of TOP-500 companies by solvency index Globas

Industrial production index
According to the Federal Service of State Statistics, there is a tendency towards an increase in indicators of the industrial production index in the Chechen Republic during 12 months of 2018 (Picture 14). At the same time, the average index indicator from month to month amounted to 99,8.

Picture 14. Industrial production index in the Chechen Republic in 2018, production index in the Republic of Crimea and Sevastopol in 2018, month to month (%)

According to the same information, the share of enterprises of the Chechen Republic in the total amount of revenue from the sale of goods, works, services made 0,041% countrywide for 2018, and for the 1st quarter of 2019 – 0,037%, that is lower than the indicator for the 1st quarter of 2018, which amounted to 0,039%.

Conclusion
A comprehensive assessment of activity of the largest companies in the real sector of the economy of the Chechen Republic, taking into account the main indices, financial indicators and ratios, points to the prevalence of positive trends (Table 1).

Table 1. Positive and negative trends, evaluation factors of TOP-500 companies

Trends and evaluation factors of TOP-500 enterprise	Specific share of factor, %
Rate of growth (decline) in the average size of net assets	-10
Increase / decrease in the share of enterprises with negative values of net assets	10
Concentration level of capital	-10
Rate of growth (decline) in the average size of revenue	10
Rate of growth (decline) in the average size of profit (loss)	-10
Growth / decline in average values of companies’ net profit	5
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 enterprises in the region in terms of revenue being more than 22%	10
Regional concentration	-10
Financial position (the largest share)	5
Solvency index Globas (the largest share)	10
Industrial production index	5
Dynamics of the share of enterprises of the Republic in the total amount of revenue from the sale of goods, works, services countrywide	-10
Average value of the specific share of factors	1,3

positive trend (factor), negative trend (factor).

Information agency Credinform has prepared a review of trends of the largest companies engaged in wholesale of motor fuel, including aviation fuel.The largest enterprises (TOP-10 and TOP-1000) in terms of annual revenue were selected for the analysis according to the data from the Statistical Register for the latest available periods (2015-2017). The analysis was 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 LLC RN-LUBRICANTS . In 2017, net assets value of the company exceeded 14,7 billion RUB.

The lowest net assets volume among TOP-1000 belonged to JSC FORTEINVEST. Insufficiency of property of the company was indicated in negative value of -8,1 billion RUB.

Covering the ten-year period, the average net assets values have a trend to increase (Picture 1).

Picture 1. Change in average net assets value in 2008 – 2017

The shares of TOP-1000 companies with insufficient property have trend to decrease over the past three years (Picture 2).

Picture 2. Shares of companies with negative net assets value in TOP-1000, 2015-2017

Sales revenue
In 2017, total revenue of 10 largest companies of was 64% of TOP-1000 total revenue (Picture 3). This testifies high level of monopolization in the industry.

Picture 3. Shares of TOP-10 companies in TOP-1000 total profit for 2017

Covering the ten-year-period, there is an increase in industry average revenue (Picture 4).

Picture 4. Change in industry average net profit in 2008-2017

Profit and loss
The largest company in term of net profit is LLC RN-AERO. The company’s profit for 2017 amounted to 14,4 billion RUB.

Over the ten-year period, there is a trend to increase in average net profit (Picture 5).

Picture 5. Change in industry average net profit values n 2008-2017

For the three-year period, the average net profit values of TOP-1000 companies decreased with the average net loss value having the decreasing trend (Picture 6).

Picture 6. Change in average net profit and net loss of ТОP-1000 in 2015 – 2017

Key financial ratios
For the ten-year period, the average values of the current liquidity ratio were mainly above the recommended one - from 1,0 to 2,0 with a trend to decrease (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 in 2008 – 2017

For the ten-year period, the average values of ROI ratio were on a quite high level with a trend to increase (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 average values of ROI ratio in 2008 – 2017

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

Picture 9. Change in average values of assets turnover ratio in 2008 – 2017

Small enterprises
90% companies of TOP-1000 are registered in the Register of small and medium-sized enterprises of the Federal Tax Service of the Russian Federation. At the same time, their share in total revenue for 2017 amounted to 12% that is lower than the national average figure (Picture 10).

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

Main regions of activity
Companies of TOP-1000 are registered in 79 regions of Russia and located across the country quite unequally. Over 61% of their turnover is concentrated in Saint Petersburg and Moscow (Picture 11).

Picture 11. Distribution of TOP-1000 revenue by regions of Russia

Financial position score
Assessment of the financial position of TOP-1000 companies shows that almost a half of them have stable financial position (Picture 12).

Picture 12. Distribution of TOP-1000 companies by financial position score

Solvency index Globas
Most of TOP-1000 companies got Superior / High and Strong / Medium index Globas. This fact shows their ability to meet their obligations fully (Picture 13).

Picture 13. Distribution of TOP-1000 companies by solvency index Globas

Conclusion
Complex assessment of activity of the largest Russian companies engaged in fuel wholesale, taking into account the main indexes, financial ratios and indicators, demonstrates the prevalence of positive trends (Table 1).

Table 1. Positive and negative trends, evaluation factors

Trends and evaluation factors	Relative share of factors, %
Rate of growth (decline) in the average size of net assets	10
Increase / decrease in the share of enterprises with negative values of net assets	10
Rate of growth (decline) in the average size of revenue	10
Level of competition	-10
Rate of growth (decline) in the average size of 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 the region in terms of revenue being more than 22%	-10
Regional concentration	-10
Financial position (the largest share)	5
Solvency index Globas (the largest share)	10
Average value of relative share of factors	1,4

positive trend (factor), negative trend (factor).