Debt burden of construction companies of St. Petersburg

Credinform Information Agency evaluated the debt burden rate of construction enterprises of St. Petersburg. For this ranking, the regioCredinform Information Agency evaluated the debt burden rate of construction enterprises of St. Petersburg. For this ranking, the region’s constructors with highest revenue in 2011 were ranked by net liabilities index. Net liabilities index calculated as difference between the amount of credits and loans and the amount of monetary funds shows the amount of the company’s liability. In order to provide a complete vision, the ranking was added by the amount of debt burden of these enterprises. This coefficient (ratio of net liabilities to sales profit rate) identifies the company’s debt burden rate: the higher is the indicator, the bigger is the enterprise’s debt burden, and, accordingly, the higher is the risk of problems in repayment of credits and loans.’s constructors with highest revenue in 2011 were ranked by net liabilities index. 

Debt burden and solvency index of construction companies of St. Petersburg with highest turnover
NameINNTurnoverin 2011, ml rub.Net liabilities, ml rub.Debt burden ratioRating index
LenSpetsSMU CJSC 7802084569 17,385.71 6,255.22 0.84 182 (highest)
Renaissance Construction CJSC 7814017341 3,965.22 909.05 5.11 183 (highest)
CC Dalpiterstroy LLC 7825130998 3,968.73 774.61 2.28 265 (high)
Kompakt CJSC 7816043467 6,687.83 391.09 0.88 227 (high)
NSK-Monolit LLC 7801240198 9,257.10 -32.72 -0.47 259 (high)
BaltStroy CJSC 7804079525 9,260.63 -42.33 -0.12 210 (high)
GeneralConstructionCorporation OJSC 7804017141 4,706.77 -101.171 -1.35 191 (highest)
INTARSIA LLC 7801020442 6,831.08 -204.20 -1.15 218 (high)
GazpromInvest Zapad LLC 7810483334 8,722.21 -264.29 -1.75 274 (high)
Blok House Building Factory CJSC 7813007012 7,705.27 -1,739.89 -2.23 195 (highest)

Upon the results of selection the leader in turnover in St. Petersburg – LenSpetsSMU CJSC – has also the highest value of net liabilities. However, the debt burden ratio of this enterprise is at a rate acceptable for further development, which is confirmed by the highest GLOBAS-i Solvency Index. Kompakt CJSC is in a similar situation. According to 2011 indicators, the company also has substantial revenues and rather low net liabilities index confirmed by low debt burden coefficient and high solvency index.

Renaissance Construction CJSC and CC Dalpiterstroy LLC with modest amount of net liabilities have slightly higher debt burden index value; however, the highest and high solvency index assigned to the construction companies allows feeling no fear about the future activity of enterprises.

All other companies in ranking have negative net liabilities index and, accordingly, negative debt burden coefficient. Such indicators appear due to prevalence of cash money over short-term and long-term liability, as well as to absence of losses in the structure of balance sheet figures of the companies.

Despite rather high net liabilities indicators found in some of enterprises in the ranking, as well the debt burden ration, all ten enterprises were assigned with highest and high GLOBAS-i Solvency Indices. Risk of their monetary default is insignificant.

Active involvement of borrowed funds is a prerequisite for efficient operation of major construction organizations. At the same time substantial revenues, sustainable market position and established relations with suppliers and contractors allow speaking about the considered companies as reliable counteragents.

Overall liquidity of fishery enterprises in Russia

Credinform Information Agency prepared a ranking “Overall liquidity of fishery enterprises in Russia”. For this ranking, the experts selected fishery enterprises with highest revenue in Russia and then ranked these companies by “overall liquidity” index.

In general, liquidity coefficients reflect ratio of liquid assets to short-term liability and characterize the company’s ability to repay its short-term liability, which is the most risky.

What concerns overall liquidity index, it constitutes the ratio of total current assets of company to short-term liability. This indicator is used for evaluation of the company’s current liquidity and shows the sufficiency of its current assets for repayment of short-term liability.

Recommended value is between 1.0 and 2.0.

We should remind that current assets include the following indicators: inventory, value added tax on acquired assets, accounts receivable, financial investments (except monetary equivalents), monetary assets and monetary equivalents, and other current assets.

Short-term liability incorporates debenture, accounts payable, deferred income, estimated liability, and other short-term liability.

Overall liquidity and solvency index of the fishery enterprises with highest turnover
NNameINNTurnoverin 2011, ml rub.Overall liquidityIndex
1 AkrosFisheryCompany CJSC 4101013772 3,428.73 6.74 190 (highest)
2 Nakhodka Active Marine Fishery Base OJSC 2508007948 5,445.32 3.5 198 (highest)
3 Pacific Directorate of Exploratory Fishing and Scientific Research Fleet OJSC 2536053382 1,996.0 1.95 159 (highest)
4 Okeanrybflot OJSC 4100000530 597.5 1.91 173 (highest)
5 PC V.I. Lenin Fishing Kolkhoz 4101016808 2,967.4 1.83 226 (high)
6 Pacific Marine CJSC 2540071722 2,201.4 1.36 244 (high)
7 ArkhangelskTrawlerFleet OJSC 2901128602 3,229.6 1.25 242 (high)
8 Preobrazhenskaya  Trawler Fleet Base OJSC 2518000814 2,925.57 1.02 243 (high)
9 Morskaya Zvezda LLC 3903017709 1,888.4 1.02 260 (high)
10 DalmoreproduktHoldingCompany OJSC 2504001293 2,285.3 0.97 316 (satisfactory)

Analysis of the table shows that almost all companies possess sufficient current assets for repayment of short-term liability. Moreover, Akros Fishery Company CJSC and Nakhodka Active Marine Fishery Base OJSC possess substantial current assets, which is accordingly reflected in overall liquidity index as well. According to the results of 2011, it has increased for these enterprises by 6.74 and 3.5 respectively.

On the one hand, this fact is positive for both companies, since in this case they possess substantial resources to cover short0term liability. On the other hand, high overall liquidity index bears also a negative load, in particular: excess of products in stocks and delayed receipt of money from partners against critical processes taking place in the country’s economy may result in serious problems for the company, such as: overstocking and arrears in payments. In both cases losses in cash inflow are possible, which may ultimately affect the entire business.

Taking into account that the solvency index of Akros Fishery Company CJSC and Nakhodka Active Marine Fishery Base OJSC is identified by experts from IA Credinform as highest, we should hardly expect serious losses in business of aforementioned companies, while excess of products in stocks and delayed receipt of money from partners has a merely temporary nature related to production activity in 2011.

Overall liquidity index of Dalmoreprodukt Holding Company OJSC is slightly lower than the standard one. In this case, the index result has been affected by excessive number of accounts payable that increased almost up to 2 billion rub. according to the results of 2011.

However, in conclusion, we should emphasize that the overall liquidity index must be mandatorily considered in complex with other financial indicators of financial and business activity of the company. Such complex is constituted by the solvency index.
Against acceptable results of overall liquidity coefficient, the indices vary significantly, for example: the highest is assigned to first four companies, while such company as Dalmoreprodukt Holding Company OJSC has a satisfactory one. Such solvency index is assigned to this company due to losses according to the results of activities in 2010-2011.

Moreover, low solvency indices mean that the company is not all right. These may imply problems in rate of production and sales, poor payment discipline – both that of partners and of the company itself, expensive credits, low profitability of the business, and other factors, the mitigation of which may sometimes require application of radical measures.