Inventory turnover of the coal mining enterprises

Information Agency Credinform has prepared the ranking of the companies engaged in the coal industry.

The largest enterprises in terms of revenue were selected according to the data from the Statistical Register for the latest available period (for the year 2013). Then, the companies were ranged by decrease in inventory turnover.

Inventory turnover (times) – is a ratio of revenue to average value of stocks for a period. The ratio shows the speed of inventories sale.

The ratio is characterized by the company’s effectiveness of using of the resources taking into account the time factor.

The standard value of the ratio is not set, herewith it is recommended to maximize its value.

While making an assessment of the company’s activity, the industry average rate should be taken into account. 

For the most full and fair opinion about the company’s financial condition, not only the average revenue values should be taken into account, but also the whole set of financial data.   

Table 1. Revenue, inventory turnover and solvency index of the largest coal mining enterprises (Top-10)
NameRegionRevenue, mln. RUB, 2013Inventory turnover, timesSolvency index GLOBAS-i®
INN 2466152267
Krasnoyarsk Territory 18 115,0 44 270 high
INN 4234001215
Kemerovo region 29 872,9 30 284 high
3 JSC OUK Juzhkuzbassugol
INN 4216008176
Kemerovo region 30 574,4 27 288 high
INN 4205003440
Kemerovo region 18 949,4 25 258 high
INN 1103019252
Komi Republic 25 894,2 17 282 high
6 JSC Tugnuisky razrez
INN 0314002305
The Republic of Buryatia 19 770,0 16 248 high
INN 4212024138
Kemerovo region 60 492,0 16 330 satisfactory
INN 4205049090
Kemerovo region 52 298,7 9 295 high
INN 4214000608
Kemerovo region 29 139,8 8 306 satisfactory
INN 1434026980
The Republic of Sakha (Yakutia) 19 081,4 8 331 satisfactory

coal industry

Picture 1. Inventory turnover and revenue of the largest coal mining enterprises (Top-10) 

According to the latest financial statements, the revenue of the companies engaged in the coal industry amounted to 304,2 bln. RUB, which is about 49% of the total industry revenue. In 2013 the total revenue of Top-10 enterprises decreased by 6,1% from the level of 2012.

The average inventory turnover is 16 times. Almost all leaders of the market exceed the average value of the index, that allows them to attract additional revenue and indicates the existence of better production cycle.

The highest speed of the inventory turnover (44 times) showed OJSC SUEK-KRASNOYARSK – the largest manufacturer of brown coal in the Krasnoyarsk Region.

OJSC SUEK-KUZBASS – the largest coal enterprise in Russia by revenue makes 16 cycles of inventory turnover per year.

According to an independent assessment of the Information Agency Credinform, seven out of ten participants from the Top-10 list received the high solvency index. Such fact speaks about ability of the largest market participants to meet its obligations on time and fully, the risk of unfulfillment is low. 

OJSC SUEK-KUZBASS, JSC YUZHNYI KUZBASS, OJSHC YAKUTUGOL have the satisfactory solvency index, which shows to a potential investor the need of attraction of the additional guarantees for credit and business-cooperation purposes.

The increase of the industrial production in December reached a year maximum

The industrial production in Russia increased by 3,9% in December 2014 comparing with the corresponding period of 2013. The growth was recognized after the drop of this indicator in November by 0,4% and the growth by 2,9% following the October results.

The growth of the industrial production in December in comparison with November amounted to 8,1%. By contrast in December 2013 this indicator amounted to 3,6%. At the same time the results of the last December became a total surprise for the experts. Thus, the analysts forecasted the growth following the results of December for less than 1,4%.

industrial production in Russia

Dynamics of industrial production index

Some experts explain such impressive results of the industrial production in December by a calendar factor (in December 2014 there was one more working day in comparison with December 2013) and also by a low value of this indicator in December 2013. Besides, the growth of the industrial production that year in comparison with 2012 amounted to only 0,4% after 2,8% following the results of November.
In addition, the industrial dynamics in the sectors with a long investment cycle should be noted among factors that influenced the experts’ forecast precision. These sectors are particularly exposed to different fluctuations. Thus, following the results of the last December the production of gas turbines increased threefold comparing with the corresponding period of 2013. However, in the end of year the results appeared to be humbler and the growth amounted to 14,5%.
Embargo and devaluation of ruble influenced the December data as well. Therefore the active growth was recognized in the processing industry sectors where the import substitution takes place. For instance, production of meat (excluding poultry meat) increased by 20,1% (by 13,3% per year) and cheese by 32,7% (by 14,1% per year).
As a whole, the growth in the processing production in the last December amounted to 4% and to 2,1% per year. The production in the sector of mineral resources extraction increased by 3% in December and by 1,4% per year. In the sector of production and distribution of power energy, gas and water the growth by 3,4% was recognized in December and the drop by 0,1% per year.