In 2017, Russia exported goods and services at the total value of 353 bln US dollars that is 25% higher than the previous year. Despite the significant increase, the country’s share in global export does not exceed 2%.

Strategically, export is a tool for activation of existing and potential competitive edge of any economy in the international differentiation of labor.

Maximum amount of the Russian export was recorded in 2012 — 527 bln US dollars (see Picture 1). However, following the results of 2016, after the imposing sanctions and rouble devaluation, export decreased almost two times — to 282 bln US dollars. At the positive trend of increasing export in January-February 2018 by 26% to the level of 2017, growth up to 445 bln US dollars should be expected, and Russia will be included in Top-10 exporters again.

Picture 1. Dynamics of the Russian export by balance of payments methodology, bln US dollars

Analyzing the Russian export, a set of features could be noted:

1. Small share in the global differentiation of labor

The share of Russia in the global differentiation of labor remains to be low. Having scientific, technological and human resources, the country is only the 13th by the amount of goods and services delivery to the global market, which in general corresponds to its current economic development: relation of export to the GDP is 22,4% that is close to the worldwide average (see Table 1). By total exports, Russia takes a back seat to Singapore, Mexico and Canada.

China continues to top the rating. Total exports of the country for 2017 amounted to 2 698 bln US dollars that is 15,6% of global figure. The USA and Germany are the 2nd and 3rd respectively. However despite the high export volume of the USA, the monetary relation to the GDP is low — 8,1%, while in Germany it is 38%. So in relative terms the export potential of Germany is 4,8 times higher than the USA, and the export potential of Russia is 2,8 times higher than American.

2. Misbalance in export structure

Following the results of 2013, 70% of the Russian export was accounted for mineral fuel, oil and gas. In 2017 the share of these products fell to 59%, but still exceeds the share of all other goods in the total export volume.

3. Dependence of export on countries conducting policy of sanctions pressure and political confrontation

Top-10 of countries importing goods and services from Russia includes among other countries which conduct hostile sanctions policy of domestic companies and chief senior executives: the USA (6^th position), Japan (7^th) and Ukraine (8^th).

However the main export direction of Russia is EU countries — 44,6% of total volume in monetary terms (see Table 2). Interrelationship of Russia and the EU in trade slightly reduce political risks and possibility of deeper confrontation happens to be nowadays.

4. Predominance of the US dollar at settle for goods and services supplies

Dollar continues to be the leading currency at settlement structure of domestic counterparties for goods and services supplies by foreign trade contracts. Its share in 2017 was 69%, while 15% accounts for Euro, 15% — for Russian Rouble and 2% — for other currencies. Comparing to 2013, Dollar’s share demonstrated an 11% reduction, when Euro and Rouble increased by 6% and 5% respectively.

Picture 2. Currency structure of settlement for supplies of the Russian goods and rendering of services by foreign trade contracts, dynamics

Exporting goods and services, the country is directly involved in international trade. Export revenues provide budget replenishment and administer funds for industry development, support of economy, social payments.

Companies supplying the export markets (without compromising the domestic one) will always be in constant search of new technologies, ways to improve efficiency, development of logistics and management. Expansion into new markets allows to increase revenues, raise wages, expand the staff, affecting the inland level of prosperity by doing so.

Marketability shows success of both a particular company and the country in general. Increasing the share in foreign trade, Russia could avoid dangerous confrontation with the Occident.

In the words of Benjamin Constant, politician and writer of the age of the French Revolution, "... War is all impulse, commerce is calculation. Hence it follows that an age must come in which commerce replaces war. We have reached this age".

Information Agency Credinform presents a review of trends in publishing activities.

The publishing houses 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 (2015 and 2016). The analysis was based on the data from the Information and Analytical system Globas.

Net assets

It 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.

^*) — growth or decline values compared to prior period are highlighted green and red respectively in columns 4 and 5.

Picture 1. Change in average net asset value of the largest publishing houses in 2007 — 2016

Sales revenue

In 2016 sales revenue of 10 industry leaders amounted to 45% of total revenue of TOP-1000 companies. This is an indicator of a relatively high level of monopolization within the sector (Picture 2).

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

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

Picture 3. Change in average revenue of publishing houses in 2007— 2016

Profit and loss

In 2016 profit of 10 industry leaders amounted to 66% 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 profit values of companies of the sector within a decade tend to decline (Picture 5).

Picture 5. Change in average profit of the largest publishing houses in 2007 — 2016

Average profit values of TOP-1000 companies for three years tend to decline, as well as average loss value (Picture 6).

Picture 6. Change in average profit and loss of the largest publishing houses in 2014 — 2016

Key financial ratios

During the last decade industry average values of liquidity coverage ratio were within the recommended value — from 1,0 to 2,0 (Picture 7). In general, the ratio value tends to increase.

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

A calculation of practical values of financial ratios, which might be considered as normal for a certain industry, has been developed and implemented in the Information and Analytical system Globas by the experts of the Information Agency Credinform, having taken into account the current situation in the economy as a whole and in the industries. The practical value of liquidity coverage ratio of publishing houses amounted from 0,75 to 3,33 in 2016.

Picture 7. Change in average values of liquidity coverage ratio of publishing houses in 2007 — 2016

The return on investment ratio (Picture 8) was not stable during the decade, tending to decrease. It is a ratio of net profit to shareholders’ equity and noncurrent liabilities, and it demonstrates benefit from shareholders’ equity engaged in business activity and long-term raised funds of the company.

Picture 8. Change in industry average values of return on investment ratio of publishing houses in 2007 — 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 decade, this activity ratio tended to decrease in general (Picture 9).

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

Activities structure

Companies that specialize in wide-profile publishing activities have the largest share in total revenue of TOP-1000 companies (Picture 10).

Picture 10. Types of activity by their share in total revenue of TOP-1000 companies, %

77% companies of TOP-1000 are included in the register of small and medium-sized businesses of the Federal Tax Service of the Russian Federation, among them 35% are micro enterprises, 40% are small businesses, and 2% are considered medium-sized businesses.

Key regions of activity

TOP-1000 companies are unevenly located throughout Russian territory, and are registered in 71 region (Picture 11).

Picture 11. TOP-1000 companies by Russian regions

Financial position score

Assessment of financial state of TOP-1000 companies indicates that most of the companies have an average financial standing (Picture 12).

Picture 12.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 13).

Picture 13. TOP-1000 companies by Solvency index Globas

Therefore, a comprehensive assessment of the largest publishing houses, that considers key indexes, financial figures and ratios, is indicative of negative trends in the sector.