Information Agency Credinform presents a review of activity trends of the largest real economy companies of the Republic of Tatarstan.

The companies from the Republic of Tatarstan with the highest volume of annual revenue (TOP-10 and TOP-1000) have been selected for the ranking, according to the data from the Statistical Register for the latest available accounting periods (2014 — 2016). The analysis was based on the data from the Information and Analytical system Globas.

Net assets is an indicator of fair value of corporate assets that is calculated annually as assets on balance less company’s liabilities. Net assets value is negative (insufficiency of property) if liabilities are larger than the property value.

Table 1. Companies of the Republic of Tatarstan with the largest and the smallest net assets in 2016

No. in TOP-1000	Name, INN, region, key type of activity	Net assets, million RUB			Solvency index Globas
		2014	2015	2016
1.	Tatneft named after V.D. Shashin PJSC INN 1644003838 Extraction of crude petroleum and associated petroleum gas	485 094	545 333	624 473	140 Superior
2.	TELECOM-MANAGEMENT LLC INN 1655061006 Investment in securities Since 13.03.2018 is in process of reorganization in the form of accession to TAIF JSC INN 1655020761	46 767	91 918	122 496	600 Insufficient
3.	Nizhnekamskneftekhim PJSC INN 1651000010 Production of synthetic rubber in primary forms	68 236	91 980	108 747	138 Superior
4.	TRANSNEFT - PRIKAMYE NJSC INN 1645000340 Oil transportation via pipelines	87 529	95 377	107 998	164 Superior
5.	State housing fund under President of the Republic of Tatarstan INN 1655065113 Real estate management on a fee or contract basis	59 076	73 214	78 798	260 Medium
996.	BANKING DEBT CENTER LLC INN 7730126601 Investment in securities Since 26.03.2018 it is in process of reorganization in the form of merger of LIRIDAN LLC INN 1655270345	-228	-922	-1 362	323 Adequate
997.	ELASTIC PLANT LLC INN 1651041168 Manufacture of footwear	-1 977	-2 860	-2 257	282 Medium
998.	MANAGING COMPANY TECHNOPOLIS NOVAYA TURA LLC INN 1655228689 Buying and selling of own real estate	-1 564	-3 078	-2 258	310 Adequate
999.	KAZSTROIINVEST NJSC INN 1660054950 Leasing and operating of own or leased real estate	-4 436	-6 871	-5 458	250 Medium
1000.	FORD SOLLERS HOLDING LLC INN 1646021952 Manufacture of motor vehicles	5 492	3 980	-19 247	334 Adequate

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

Average values of net assets of TOP-1000 companies tend to increase during the last 3 years (Picture 1).

Picture 1. Change in average net assets value of TOP-1000 companies in 2014 — 2016

Sales revenue

In 2016 sales revenue of 10 industry leaders amounted to 37% of total revenue of TOP-1000 companies. This is an indicator of concentration of large companies in the Republic of Tatarstan (Picture 2).

Picture 2. TOP-10 companies by their share in 2016 total revenue of TOP-1000 companies

In general, revenue tends to increase (Picture 3).

Picture 3. Change in average revenue of TOP-1000 companies in 2014 — 2016

Profit and loss

In 2016 profit of 10 industry leaders amounted to 72% of total profit of TOP-1000 companies (Picture 4).

Picture 4. TOP-10 companies by their share in 2016 total profit of TOP-1000 companies

Average net profit values of TOP-1000 companies within the last 3 years tend to increase, as well as average loss value (Picture 5).

Picture 5. Change in average net profit and loss of TOP-1000 companies in 2014 — 2016

Key financial ratios

Total liquidity ratio (a ratio of current assets to current liabilities) reveals the sufficiency of a company’s funds for meeting its short-term liabilities.

During the last 3 years average values of total liquidity ratio were within the recommended value — from 1,0 to 2,0 (Picture 6). In general, the ratio value tends to increase.

Picture 6. Change in average values of total liquidity ratio of TOP-1000 companies in 2014 — 2016

The return on investment ratio is a ratio of net profit to total equity and noncurrent liabilities, and it demonstrates benefit from equity engaged in business activity and long-term raised funds of the company.

The return on investment ratio tended to increase during the last 3 years (Picture 7).

Picture 7. Change in average values of return on investment ratio of TOP-1000 companies in 2014 — 2016

Assets turnover ratio is a ratio of sales revenue to average total assets for the period, and it measures resource efficiency regardless of the sources. The ratio indicates the number of profit-bearing complete production and distribution cycles per annum.

During the last 3 years, this activity ratio tended to decrease (Picture 8).

Picture 8. Change in average values of assets turnover ratio of TOP-1000 companies in 2014 — 2016

Activities structure

Crude petroleum extraction companies have the largest share in total revenue of TOP-1000 companies (Picture 9).

Picture 9. Types of activity by their share in total revenue of TOP-1000 companies, %

45% companies of TOP-1000 are included in the register of small and medium-sized businesses of the Federal Tax Service of the Russian Federation (Picture 10).

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

Financial position score

Assessment of financial state of TOP-1000 companies indicates that most of the companies have a stable and above average financial standing (Picture 11).

Picture 11. TOP-1000 companies by their financial position score

Solvency index Globas

Most of TOP-1000 companies have got a superior, high, strong and medium Solvency index Globas, that indicates their capability to meet liabilities timely and in full (Picture 12).

Picture 12. TOP-1000 companies by Solvency index Globas

Conclusion

A comprehensive assessment of the largest real economy companies of the Republic of Tatarstan, that considers key indexes, financial figures and ratios, is indicative of predominance of positive trends within the sector. However, increase in net loss and decrease of business activity ratio are the alarming factors.

Information agency Credinform has prepared a review of trends in activity of the largest Russian companies engaged in processing and conservation of fish, crustaceans and mollusks.

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

Table 1. Companies engaged in processing and conservation of fish, crustaceans and mollusks with the highest and lowest net assets rate in 2016

Position in ТОP-1000	Name, activity, region	Net assets value, mln. RUB			Solvency index Globas
		2014	2015	2016
1.	NAO KURILSKII RYBAK INN 6511000178 Sakhalin region	6 129	7 851	9 306	155 Superior
2.	PAO OZERNOVSKII RKZ #55 INN 4108003484 Kamchatka Krai	1 042	2 156	3 444	158 Superior
3.	USTKAMCHATRYBA CO., LTD INN 4109002780 Kamchatka Krai	1 040	1 506	2 265	174 Superior
4.	LLC RYBOLOVETSKII KOLKHOZ IM. KIROVA INN 6504006429 Sakhalin region In process of reorganization in the form of merger of other legal entities, 12.12.2017	1 637	1 709	1 975	209 Strong
5.	LLC PROIZVODSTVENNO-KOMMERCHESKAYA FIRMA YUZHNO-KURILSKII RYBOKOMBINAT INN 6518005270 Sakhalin region	543	1 244	1 605	198 High
996.	LLC PERSEI INN 6504027411 Sakhalin region	-514	-556	-567	357 Adequate
997.	NAO RUSSIAN SEA INN 5031033020 Moscow region	-1 146	-1 988	-591	226 Strong
998.	NAO KURILSKY RASSVET INN 6515001310 Sakhalin region	-923	-1 269	-921	243 Strong
999.	NAO BALTIC COAST INN 7826059025 Leningrad region Process of being wound up, 03.05.2017	947	578	-1 097	600 Insufficient
1000.	LLC RK KRUTOGOROVSKOE INN 4101094570 Kamchatka Krai	-611	-734	-1 227	346 Adequate

— growth indicator in comparison with prior period, — decline indicator in comparison with prior period.

For the last 10 years, the average values of net assets showed the increasing tendency (Picture 1)

Picture 1. Change in average net assets value in 2007 — 2016

Sales revenue

In 2016 total revenue of 10 largest companies amounted to 37% from TOP-1000 total revenue. This fact testifies high level of competition within the industry (Picture 2).

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

In general, the decrease in sales revenue is observed (Picture 3).

Picture 3. Change in average revenue in 2007 — 2016

Profit and loss

In 2016 profit of 10 largest companies amounted to 58% from TOP-1000 total profit (Picture 4).

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

For the last ten years, the average industry net profit values show the growing tendency despite the losses in 2008, 2011, 2014 (Picture 5).

Picture 5. Change in average net profit in 2007 — 2016

For the three-year period, the average net profit values of TOP-1000 companies show the growing tendency. At the same time, the average net loss slightly increases (Picture 6).

Picture 6. Change in average profit/loss of ТОP-1000 in 2007 — 2016

Main financial ratios

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

For the last ten years, the average values of the current liquidity ratio were within the recommended values — from 1,0 to 2,0 (Picture 7). In general, the ratio shows the growing tendency.

Picture 7. Change in average values of current liquidity ratio in 2007 — 2016

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.

For the last ten years, the increasing tendency of ROI ratio is observed (Picture 8).

Picture 8. Change in average values of ROI ratio in 2007 — 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 last ten years, this business activity ratio demonstrated the downward trend (Picture 9).

Picture 9. Change in average values of assets turnover ratio in 2007 — 2016

Production structure

92% companies of TOP-1000 are registered in the Register of small and medium-sized businesses of the Federal Tax Service of the Russian Federation (Picture 10).

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

Main regions of activity

Companies of TOP-1000 are unequally located across the country due to dependence on the sources of raw materials and registered in 74 regions of Russia (Picture 11).

Picture 11. Distribution of TOP-1000 companies by the regions of Russia

Financial position score

An assessment of the financial position of TOP-1000 companies shows that the majority of them have financial position above average (Picture 12).

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

Solvency index Globas

Most of TOP-1000 companies got 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 13).

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

Conclusion

A complex assessment of activity of the largest Russian companies engaged in processing and conservation of fish, crustaceans and mollusks, taking into account the main indexes, financial ratios and indicators, demonstrates the presence of favorable trends. However, declining revenue, increasing in net losses, decrease in business activity ratio are alarming factors.