Information agency Credinform represents an overview of trends in the activity of companies, producing computers, electronic and optical products.

Enterprises with the largest volume of annual revenue, producing computers, electronic and optical products (TOP-10 and TOP-1000), were selected for the analysis, according to the data from the Statistical Register for the latest available periods (for 2015 and 2016). The analysis was made on the basis of the data of the Information and Analytical system Globas.

Net assets

The indicator, reflecting the real value of company’s property, is calculated annually as the difference between assets on the enterprise balance 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 indicators of growth or decline to the previous period are marked in columns 4 and 5 with green and red fillings, respectively.

Picture 1. Change in the industry average indicators of the net asset value of companies, producing computers, electronic and optical products, in 2007 – 2016

Sales revenue

The revenue of 10 industry leaders made 25% of the total revenue of TOP-1000 companies in 2016. It points to a relatively high level of competition in the industry (Picture 2).

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

In general, there is a trend towards an increase in volume revenue (Picture 3).

Picture 3. Change in the industry average revenue of companies, producing computers, electronic and optical products, in 2007 – 2016

Profit and losses

The profit volume of 10 industry leaders in 2016 made 42% of the total profit of TOP-1000 companies (Picture 4).

Picture 4. Share of participation of TOP-10 companies in the total volume of profit of TOP-1000 companies for 2016

Industry average profit’s indicators of companies of the industry for the ten-year period trend to increase (Picture 5).

Picture 5. Change in the industry average indicators of profit of companies, producing computers, electronic and optical products, in 2007 – 2016

Over a three-year period, the average values of profit indicators of TOP-1000 companies tends to increase, and the average value of net loss decreases (Picture 6).

Picture 6. Change in the industry average indicators of profit and loss of the largest companies, producing computers, electronic and optical products, in 2014 – 2016

Key financial ratios

Over the ten-year period the industry average indicators of the total liquidity ratio were in the range of recommended values — from 1,0 up to 2,0 (Picture 7). In general, the ratio indicator tends to increase.

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.

The experts of the Information agency Credinform, taking into account the actual situation both in the economy as a whole and in the sectors, has developed and implemented in the Information and Analytical system Globas the calculation of practical values of financial ratios that can be recognized as normal for a particular industry. For companies, producing computers, electronic and optical products, the practical value of the total liquidity ratio made from 1,00 up to 4,06 in 2016.

Picture 7. Change in the average industry values of the total liquidity ratio of companies, producing computers, electronic and optical products, in 2007 – 2016

There has been an instability observed in indicators of the return on investment ratio, for ten years, with a tendency to decrease (Picture 7). 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 involved in the commercial activity of own capital and the long-term borrowed funds of an organization.

Picture 8. Change in the average industry values of the return on investment ratio of companies, producing computers, electronic and optical products, in 2007 – 2016

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.

As a whole, this business activity ratio showed a tendency to decrease over the ten-year period (Picture 9).

Picture 9. Change in the average industry values of the asset turnover ratio of companies, producing computers, electronic and optical products, in 2007 – 2016

Production structure

The largest share in the total revenue of TOP-1000 is owned by companies, specializing in the manufacture of navigation, measuring and control appliances and devices and the manufacture of watches (Picture 10).

Picture 10. Distribution of types of activity in the total revenue of TOP-1000 companies, %

Main regions of activity

TOP-1000 companies are unequally distributed across the Russian territory and registered in 64 regions (Picture 11).

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

Financial position score

An assessment of the financial position of companies in the industry shows that the largest number is in a stable financial position and above the average (Picture 12).

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

Solvency index Globas

Most of TOP-1000 companies got High or Strong/Medium Solvency index Globas, that points to their ability to repay their debts in time and fully (Picture 13).

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

Thus, a comprehensive assessment of enterprises, producing computers, electronic and optical products, taking into account the main indices, financial indicators and ratios, points to the prevalence of favorable trends in the industry.

Information agency Credinform offers a ranking of the largest Russian manufacturers of computers, electronic and optical products. The companies with the largest volume of annual revenue (TOP-10) were selected for the ranking, according to the data from the Statistical Register for the latest available periods (for 2016 and 2015). Then they were ranked by equity turnover ratio (Table 1). The analysis is based on data of the Information and Analytical system Globas.

Equity turnover ratio (times) is calculated as a relation of revenue to annual average sum of equity and demonstrates the company’s usage rate of all available assets.

Equity turnover ratio reflects the turnover rate of own capital. The high value of this indicator shows the effectiveness of use of own funds. Accordingly, low ratio value shows inaction of the part of own funds.

The experts of the Information agency Credinform, taking into account the actual situation both in the economy as a whole and in sectors, has developed and implemented in the Information and Analytical system Globas the calculation of practical values of financial ratios that can be recognized as normal for a particular industry. For manufacturers of computers, electronic and optical products the practical value of the equity turnover ratio was from 2,04 in 2016.

For getting of the most comprehensive and fair picture of the financial standing of an enterprise it is necessary to pay attention to all combination of indicators and financial ratios.

The average indicator of the equity turnover ratio of TOP-10 companies in 2016 is below the average industrial value. Four from TOP-10 enterprises have increased in 2015 — 2016 the indicators of revenue and net profit compared to the previous period (marked with green color in columns 2 — 5 of the Table 1). Other companies either have decreased their indicators of profit or have got loss (marked with red filling in columns 2 — 5 of the Table 1).

Picture 1. Equity turnover ratio and revenue of the largest Russian manufacturers of computers, electronic and optical products (TOP-10)

The industry average values of the equity turnover ratio were above the practical value of 2016 with decreasing tendency over the past ten years (Picture 2).

Picture 2. Change in the average industry values of the equity turnover ratio of largest Russian manufacturers of computers, electronic and optical products (in 2007 — 2016)

Nine out of TOP-10 companies have got from strong to superior solvency index Globas , that demonstrates their ability to repay their debt obligations in time and fully.

LLC VLV has got adequate solvency index Globas, because of loss andnon-compliance of indicators of liquidity and financial stability to normal recommended values. The forecast for index development is stable.