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

The enterprises with the largest volume of annual revenue of the real sector of the economy in Saratov region (TOP-1000) were selected for the analysis, according to the data from the Statistical Register for the latest available periods (2013-2017). The analysis was made on the basis of the data of the Information and Analytical system Globas.

Net assets is an indicator, reflecting the real value of the property of an enterprise. It 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.

Table 1. The largest companies of the real sector of economy in Saratov region with the largest and smallest net assets in 2013 – 2017

№	Name, INN, type of activity	Net assets value, bln RUB					Solvency index Globas
		2013	2014	2015	2016	2017
1	2	3	4	5	6	7	8
1	Interregional Distribution Grid Company of Volga PJSC INN 6450925977 Power transmission and technological connection to distribution grids	42,66	42,70	42,99	44,80	48,36	140 Superior
2	SARATOVSKII NEFTEPERERABATYVAYUSHCHII ZAVOD PJSC INN 6451114900 Production of petroleum products	11,19	15,22	19,12	21,31	23,63	196 High
3	SARATOVNEFTEGAZ PJSC INN 6450011500 Provision of services in the field of oil and natural gas production	16,90	17,87	17,84	17,98	18,02	263 Medium
4	GAZPROM TRANSGAZ SARATOV LLC INN 6453010110 Gas pipeline transportation	17,07	18,31	18,41	14,55	14,81	218 Strong
5	SARATOVNEFTEPRODUCT PJSC INN 6452034165 Wholesale of solid, liquid and gaseous fuels and related products	5,65	6,37	7,69	8,94	10,15	180 High
996	BALTEKS LLC INN 6440021299 Silk fabrics production	-0,22	-0,25	-0,24	-0,33	-0,40	339 Adequate
997	SARATOVSKAYA PRIGORODNAYA PASSAZHIRSKAYA KOMPANIYA NJSC INN 6452950802 Transportation of passengers by rail in intercity traffic	-0,36	-0,47	-0,44	-0,44	-0,43	256 Medium
998	GAZPROM MEZHREGIONGAZ SARATOV LLC INN 6450068585 Sale of gaseous fuels supplied through distribution networks	-0,49	-0,48	-0,47	-0,46	-0,45	264 Medium
999	Saratov Storage Tank Construction Works NJSC INN 6453009475 Manufacture of building metal structures, products and their parts Process of being wound up, 05.12.2017	0,08	0,09	0,09	-0,77	-0,90	600 Insufficient
1000	BALAKOVO-TSENTROLIT NJSC INN 6439076046 Iron casting	-0,25	-2,28	-4,10	-0,39	-4,32	324 Adequate

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

The average values of net assets of TOP-1000 enterprises tend to increase over the five-year period (Picture 1).

Picture 1. Change in the average indicators of the net asset value of TOP-1000 enterprises in 2013 – 2017

The shares of TOP-1000 enterprises with insufficiency of assets have a tendency to increase in the last five years (Picture 2).

Picture 2. Shares of enterprises with negative values of net assets in TOP-1000

Sales revenue
The revenue volume of 10 leading companies of the region made 34% of the total revenue of TOP-1000. (Picture 3). It points to a relatively low level of capital concentration in Saratov region.

Picture 3. Shares of participation of TOP-10 companies in the total revenue of TOP-1000 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-100 enterprises in 2013 – 2017

Profit and losses
The profit volume of 10 industry leaders of the region made 47% of the total profit of TOP-1000 companies in 2017 (Picture 5).

Picture 5. Shares of participation of TOP-10 companies in the total volume of profit of TOP-1000 enterprises for 2017

In general, the average profit of TOP-1000 enterprises trends to increase over the five-year period (Picture 6).

Picture 6. Change in the average values of net profit of TOP-1000 enterprises in 2013 – 2017

Average values of net profit’s indicators of TOP-1000 companies trend to increase for the five-year period, at the same time the average value of net loss decreases. (Picture 7).

Picture 7. Change in the average values of indicators of net profit and net loss of TOP-1000 companies in 2013 – 2017

Key financial ratios
Over the five-year period the average indicators of the total liquidity ratio of TOP-1000 enterprises were above the range of recommended values - from 1,0 up to 2,0, with a tendency to increase (Picture 8).

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 8. Change in the average values of the total liquidity ratio of TOP-1000 enterprises in 2013 – 2017

There has been a high level of average values of the return on investment ratio for five years, especially in 2013 - 2014, with a tendency to decrease (Picture 9).

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 9. Change in the average values of the return on investment ratio of TOP-1000 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 decrease over the five-year period (Picture 10).

Picture 10. Change in the average values of the asset turnover ratio of TOP-1000 enterprises in 2013 – 2017

Production structure
The largest shares in the total revenue of TOP-1000 are owned by companies, specializing in the manufacture of food products and wholesale (Picture 11).

Picture 11. Distribution of types of activity in the total revenue of TOP-1000 companies

78% of TOP-1000 companies are registered in the Register of small and medium-sized businesses of the Federal Tax Service of the RF. At the same time, their share in the total revenue of TOP-1000 enterprises amounted to 25,5% (Picture 12).

Picture 12. Shares of proceeds of small and medium-sized businesses in TOP-1000 companies

Main regions of activity
The TOP-1000 companies are distributed unequal across Saratov region and registered in 38 districts and inhabited localities. 81% of the largest enterprises in terms of revenue are concentrated in the regional center - in Saratov and in Engels district (Picture 13).

Picture 13. Distribution of the revenue of TOP-1000 companies by regions of Saratov region

Financial position score
An assessment of the financial position of TOP-1000 companies shows that more than half of them are in a stable financial position and above average (Picture 14).

Picture 14. Distribution of TOP-1000 companies by financial position score

Solvency index Globas
Vast majority 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 15).

Picture 15. Distribution of TOP-1000 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 Saratov region during 12 months of 2017 - 2018. (Picture 16).

Picture 16. Industrial production index in Saratov region in 2017 – 2018, month to month (%)

According to the same information, the share of enterprises of Saratov region n the amount of revenue from the sale of goods, works, services made 0,48% countrywide for 9 months of 2018.

Conclusion
A comprehensive assessment of activity of the largest companies in the real sector of the economy of Saratov region, taking into account the main indices, financial indicators and ratios, points to the prevalence of positive trends (Table 2).

Table 2. Positive and negative trends, evaluation factors of TOP-1000 companies

Trend and evaluation factors of TOP-1000 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	10
Growth / decline in average values of companies’ net loss	10
Increase / decrease in average values of total liquidity ratio	10
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 30%	-10
Regional concentration	-10
Financial position (the largest share)	10
Solvency index Globas (the largest share)	10
Industrial production index	10
Average value of the specific share of factors	3,3

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

Information agency Credinform has prepared a ranking of the largest Russian furniture manufacturers. Furniture manufacturers with the largest annual revenue (TOP-10) were selected for the ranking, according to the data from the Statistical Register for the latest available accounting periods (2015 - 2017). Then they were ranked by revenue (Table 1). The analysis was based on the data from the Information and Analytical system Globas.

Sales revenue is money or tangible assets in monetary terms received as a result of business activity after sale of goods and services. Net profit ratio is calculated as a relation of net profit (loss) to sales revenue.

Revenue and the ratio demonstrate the company’s scale and efficiency of its business activity. As a rule, the larger the revenue, the stronger its resistance to negative factors that could be ruinous for small and microenterprises. Revenue also reflects production capacity of a company, especially if taken over time. A real assessment of the company’s market competitiveness can be made by adding net profit ratio to the analysis. A high net profit ratio (higher than the average industry one) indicates a more favorable company’s position in relation to its competitors.

In general, the analysis of furniture production sector shows that this market is rather low concentrated, in other words, there is a large number of participants: 42,2% of total revenue is accounted for by TOP-50 companies, and 86,2% - by TOP-1000. In addition, both in 2016 and 2017 almost half of companies of the sector had a net profit ratio higher than the average industry value. This indicates that this market comprises mostly small and medium-sized companies, and that entry barriers are not high.

A combination of both indicators and their change over time is to be taken into account to get a full and fair view of financial standing of the companies of the sector. See the ranking of TOP-10 companies below (Table 1).

Table 1. Revenue, net profit, net profit ratio, solvency index Globas of the largest Russian furniture manufacturers (TOP-10)

Name, INN, region	Sales revenue, million RUB		Net profit (loss), million RUB		Net profit ratio, %		Solvency index Globas
	2016	2017	2016	2017	2016	2017
1	2	3	4	5	6	7	8
MEBEL STYLE LLC INN 3907046732	8809	10499	12,3	-0,3	0,1	0,0	275 Medium
ASKONA-VEK LLC INN 3305037917	7494	8450	1052,8	320,6	14,0	3,8	227 Strong
Furniture factory Marya LLC INN 6455026772	6486	7189	24,8	142,3	0,4	2,0	200 Strong
KING OF SOFAS LLC INN 6432009756	5303	4613	213,8	161,1	4,0	3,5	296 Medium
DOK-15 LLC INN 5050079140	3313	3906	27,3	41,3	0,8	1,1	222 Strong
OZ MICRON JSC INN 6002005478	3527	3884	546,3	623,1	15,5	16,0	175 High
JOINT STOCK FURNITURE COMPANY SHATURA INN 5049007736	3315	3611	0,7	114,8	0,0	3,2	210 Strong
IKEA INDUSTRY TIKHVIN LLC INN 4715011103	3365	3431	-203,8	-84,5	-6,1	-2,5	251 Medium
MZ5 GROUP LLC INN 4312146860	4137	3346	-76,3	4,0	-1,8	0,1	290 Medium
LTD ALIVE SOFAS INN 5029042443	2937	2908	52,9	26,4	1,8	0,9	213 Strong
Total for TOP-10 companies	48686	51836	1651	1349
Average for TOP-10 companies	4869	5184	165	135	2,88	2,81
Average industry value	26,1	28,8	0,7	0,7	2,77	2,37

— improvement compared to prior period, — decline compared to prior period.

In 2017, seven of TOP-10 companies improved their revenue, and also seven companies advanced their efficiency and improved net profit ratio. Along with this, average sales revenue of TOP-10 grew, and average value of net profit declined slightly.

Picture 1. Net profit ratio and revenue of the largest Russian furniture manufacturers (TOP-10)

45,47% of total industry revenue in 2017 was produced by companies of the Central federal district (Picture 2). Moscow and the Moscow region have 15,37 and 14,1% of total revenue respectively, and St. Petersburg - 5,94%. In addition, 10,6% of companies’ legal addresses are in Moscow, 8,5% - in St. Petersburg, and 8% - in the Moscow region. This indicates that to some extent furniture production is concentrated in the Central federal district, and federal cities (Moscow and St. Petersburg) play an important role within the industry.

Picture 2. Regions by their share in total revenue of 2017

During the decade, average industry value of net profit ratio have been rather stable, excluding crisis years with small decrease (Picture 3). In general, the industry has coped the recession of 2013-2015 and has come to a stable level of the ratio.

Picture 3. Change in average industry value of net profit ratio in 2008 – 2017