Аgro industrial enterprises of the North Caucasian Federal District of Russia

Information agency Credinform has observed trends in the activity of the largest enterprises of the NCFD of Russia.

Enterprises with the largest volume of annual revenue (TOP-1000) were selected for the analysis, according to the data from the Statistical Register for the latest available periods (for 2013-2018). The analysis was made on the basis of the data of the Information and Analytical system Globas.

Net assets is an 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 largest company in the NCFD in terms of net assets amount is LLC STAVROPOLSKIY BROILER, INN 2623030222, Stavropol territory. In 2018 net assets of the enterprise amounted to 9,4 billion RUB.

LLC ANDROPOVSK AGROPROJECT, INN 2603010073, Stavropol territory, had the smallest amount of net assets in the TOP-1000 group. Insufficiency of property of the company in 2018 was expressed in negative value -339 million RUB.

For a five-year period average amount of net assets of TOP-1000 companies has increasing tendency (Picture 1).

Picture 1. Change in average indicators of the net asset amount of TOP-1000 companies in 2014 – 2018

Share of companies with insufficiency of property in the TOP-1000 has increasing tendency for the last five years (Picture 2).

Picture 2. Shares of companies with negative values of net assets in TOP-1000 companies

Sales revenue
The revenue volume of 10 leaders of the industry made almost 32% of the total revenue of TOP-1000 companies in 2018 (Picture 3). It demonstrates relatively high level of competition in the industry in the NCFD.

Picture 3. Shares of participation of TOP-10 companies in the total revenue of TOP-1000 companies for 2018

In general, an increasing tendency in revenue volume is observed (Picture 4).

Picture 4. Change in the average revenue of top-1000 enterprises in 2014 – 2018

Profit and losses
The largest company in terms of net profit amount is LLC GVARDIYA, INN 2611007356, Stavropol territory. Following the results of 2018, the profit amounted to 2 billion RUB.

In general, for the last five years average indicators of net profit for TOP-1000 group have an increasing tendency (Picture 5).

Picture 5. Change in the average indicators of net profit of TOP-1000 companies in 2014 – 2018

Over a five-year period, the average values of net profit indicators of TOP-1000 companies tend to increase. Besides, the average value of net loss increases (Picture 6).

Picture 6. Change in the average indicators of net profit and loss of TOP-1000 companies in 2014 – 2018

Key financial ratios
Over the five-year period the average indicators of the current liquidity ratio of TOP-1000 in general were within the range of recommended values – from 1,0 up to 2,0 with decreasing tendency (Picture 7).

The current 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.

Picture 7. Change in the average values of the current liquidity ratio of TOP-1000 companies in 2014 – 2018

High level of the average values of the indicators of the return on investment ratio with increasing tendency have been observed for five years (Picture 8).

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 values of the return on investment ratio of TOP-1000 companies in 2014 – 2018

Asset turnover ratio is calculated as the relation of sales revenue 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.

This business activity ratio showed a tendency to increase for a five-year period (Picture 9).

Picture 9. Change in the average values of the assets turnover ratio of TOP-1000 companies in 2014 – 2018

Small business
69% of the TOP-1000 companies are registered in the Register of small and medium enterprises of the Federal Tax Service of Russia. Besides, share of revenue in the total volume is more than 43%, that is almost twice higher than the average indicator countrywide (Picture 10).

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

Main regions of activity
TOP-1000 enterprises that registered in 7 regions of the federal district and are unequally distributed along the territory. Almost 86% are located in Stavropol territory (Picture 11).

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

Financial position score
An assessment of the financial position of TOP-1000 companies shows that the largest number is in an average financial position. (Picture 12).

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

Solvency index Globas
Most of TOP-1000 companies have got from Medium to Superior 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

Conclusion
Comprehensive assessment of the activity of the largest enterprises of the NCFD of Russia, taking into account the main indexes, financial indicators and ratios, demonstrates the presence of favorable trends (Table 1).

Table 1. Positive and negative trends, assessment factors of TOP-1000

Trends and assessment factors	Share of factor, %
Rate of increase (decrease) of average amount of net assets	10
Increase / decrease of share of companies with negative values of net assets	-10
Level of competition/monopolization	10
Increase (decrease) rate of average revenue amount	10
Increase (decrease) rate of average net profit (loss) amount	10
Increase / decrease of average net profit amount of TOP-1000 companies	10
Increase / decrease of average net loss amount of TOP-1000 companies	-10
Increase / decrease of average industrial values of the current liquidity ratio	-10
Increase / decrease of average industrial values of the return on investments ratio	10
Increase / decrease of average industrial values of the assets turnover ratio, times	10
Share of small and medium enterprises in the industry in terms of revenue volume more than 22%	10
Regional concentration	-10
Financial position (major share)	10
Solvency index Globas (major share)	10
Average value of factors	3,9

positive trend (factor), negative trend (factor).