Return on assets of security companies

Information agency Credinform has prepared a ranking of the largest Russian security companies. The largest enterprises (TOP-10) in terms of annual revenue were selected according to the data from the Statistical Register for the available periods (2016-2018). Then the companies were ranged by return on assets ratio (Table 1). The analysis was based on the data from the Information and Analytical system Globas.

Return on assets (%) is calculated as the relation of the sum of net profit and interest payable to the total assets value of a company and shows how many monetary units of net profit are earned by every unit of total assets.

The ratio characterizes the effectiveness of using by the company of its resources. The higher is the ratio value, the more effective is business, that is the higher the return per every monetary unit invested in assets.

However, it is necessary to take into account that the book value of assets may not correspond to their current market value. For example, under the influence of inflation, the book value of fixed assets will increasingly be underestimated in time, that will lead to an overestimation of the return on assets. Thus, it is necessary to take into account not only the structure, but also the age of the assets.

It should be also taken into account the dynamics of this indicator. Its consistent decline indicates a drop in asset utilization.

For the most full and fair opinion about the company’s financial position the whole set of financial indicators and ratios should be taken into account.

Table 1. Net profit, revenue, return on assets, solvency index Globas of the largest Russian security companies (ТОP-10)
Name, INN, region Revenue, million RUB Net profit (loss), million RUB Return on assets,% Solvency index Globas
2017 2018 2017 2018 2017 2018
1 2 3 4 5 6 7 8
ИНН 8904047159 Yamalo-Nenets Autonomous Okrug
up1 806,2 up2 291,0 up288,9 up360,5 up65,35 up86,14 136 Superior
ИНН 7705393628 Moscow
down1 042,3 up1 049,5 up60,7 down26,0 up41,97 down21,72 191 High
ИНН 5902189473 Perm Territory
up745,9 up848,1 up37,6 down25,3 down16,43 down12,95 200 Strong
ИНН 7701859844 Moscow
up2 169,7 down2 150,0 down34,3 up68,5 down6,37 up12,50 202 Strong
ИНН 7806302994 St. Petersburg
up812,7 up1 414,2 down8,5 up48,3 down4,18 up12,19 180 High
ИНН 1655030632 Republic of Tatarstan
up728,9 up1 147,2 up40,8 up49,1 up21,16 down6,18 181 High
ИНН 1649005010 Republic of Tatarstan
up840,3 up873,6 up5,2 up5,2 up2,67 up2,67 191 High
ИНН 7724287600 Moscow
down973,0 down969,4 down0,7 up0,7 down0,10 up0,59 237 Strong
ИНН 2463069959 Krasnoyarsk region
up1 806,2 up2 291,0 down-40,8 up-6,0 down-21,89 up-2,69 257 Medium
ИНН 1433018056 The Republic of Sakha (Yakutia)
down1 285,5 up1 327,8 up3,9 down-12,2 up1,51 down-4,08 220 Strong
Average value for TOP-10 companies up1 131,0 up1 307,0 up44,0 up56,8 up13,79 up14,82  
Average industry value up20,4 up22,4 up1,5 up1,7 down17,48 down17,09

вверх growth of indicator in comparison with prior period, вниз decline of indicator in comparison with prior period

The average value of return on assets for TOP-10 companies is lower than average industry value: in 2018, six companies improved the results.

Picture 1. Return on assets and revenue of the largest Russian security companies (ТОP-10) Picture 1. Return on assets and revenue of the largest Russian security companies (ТОP-10)

Within 10 years, the average industry indicators of return on assets ratio showed the growing tendency. (Picture 2).

Picture 2. Change in average industry values of return on assets of Russian security companies in 2009 – 2018 Picture 2. Change in average industry values of return on assets of Russian security companies in 2009 – 2018
The largest manufacturers of urban transport in Russia

Public service vehicles are strategically important for the urban infrastructure and plays an important role in people’s life. Total passenger flow in buses and trolleybuses have been reaching 11 billion people and more annually for ten years. In early 2019, the length of all-purpose roads in Russia exceeded 1,5 million kilometers, and the length of trolley lines in use were 5 thousand kilometers.

According to the Federal State Statistics Service for early 2019, there are about 116 thousand buses and 9 thousand trolleybuses in Russia. The share of foreign buses and trolleybuses and the country’s ability to manufacture own public service vehicles are the points of interest of many people. The Information Agency Credinform represents a ranking of the largest manufacturers of public service vehicles in Russia. Using the Information and Analytical system Globas, the experts of the Agency have selected enterprises engaged in buses (excluding public minibus taxis) and trolleybuses manufacturing by 2019 revenue, and analyzed the results..

Table 1. The largest manufacturers of public service vehicles in Russia by 2019 revenue and their main line of production
No Name Revenue for 2019, billion RUB Line of production
1 Pavlovsky Bus Plant (PAZ)
Nizhniy Novgorod region
19,2 Buses
2 Likinsky Bus Plant (LIAZ)
Moscow region
17,4 Buses
3 Volgabas Volzhsky
Volgograd region
8,0 Buses
Volgograd region
Bakulin Motors Group
Vladimir region
4 Kurgan Bus Plant
Kurgan region
2,6 Buses
5 Trans-Alfa
Vologda region
1,6 Trolleybuses, electric buses
6 Trolza
Saratov region
No data Trolleybuses, electric buses

The Top leaders are Pavlovsky (19,2 billion RUB) and Likinsky (17,4billion RUB) bus plants. Aggregate revenue of these enterprises exceeds 36 billion RUB and forms 75% of the market. 9 457 buses were manufactured in 2019.

According to the Information and Analytical system Globas, Pavlovsky, Likinsky and Kurgan plants are linked through the managing company GAZ Group, which is owned by Gorky Automobile Plant (GAZ).

The 5th and 6th in the ranking are manufacturers of trolleybuses and electric buses. The company Trans-Alfa (1,6 billion RUB) has the largest increase in 2019 revenue (+228,9% to the previous period). Electric buses in use made the enterprise’s turnover successfully increase.

Trolza was unable to recover after sever challenges. Interdistrict inspection of the Federal Tax Service in Saratov region filed to the Arbitration court an application for bankruptcy of the enterprise. The case is under consideration at the first instance.

Table 2. Export and import of buses and trolleybuses in 2019
Rank Country Volume, units Share, % Cost, million USD
Export, 2019
1 Kazakhstan 634 18,1 19,9
2 Republic of Belarus 555 15,8 10,8
3 Uzbekistan 419 11,9 7,2
4 Mongolia 360 10,3 3,4
5 Vietnam 357 10,2 7,3
Total for TOP-5 2325 66,3 48,6
Total exports 3506 100,0 82,1
Import, 2019
1 China 1434 50,9 108,0
2 Republic of Belarus 867 30,8 63,1
3 Turkey 123 4,4 21,0
4 Japan 97 3,4 2,4
5 Germany 81 2,9 6,6
Total for TOP-5 2602 92,4 201,1
Total imports 2817 100,0 222,7

Source: the Federal Tax Service, calculations by Credinform.

There are only 10% of foreign-manufactured vehicles among the Russian aboveground public transport (excluding public minibus taxis). In 2019, export of domestic-manufactures buses exceeded import. The main strategic partners of Russia are Kazakhstan (export share of 18,1%) and the Republic of Belarus (export share of 15,8%; import share of 30,8%). The share of import from the number of manufactured buses was only 20% in 2019.

The results of the ranking show that domestic-manufactured vehicles prevail in Russia, and passenger transportation is provided mainly by own facilities.

However, the situation is not that good. Age is a serious problem for the Russian service vehicles park. According to the Ministry of Transport of Russia, the average age of buses and trolleybuses is over 15 years. In some regions, passengers are transported by the Soviet-style buses that have been in use for more than 30 years.