Return on equity of companies, producing household chemistry
Information agency Credinform prepared a ranking of companies, manufacturing household chemistry: cleaning products and washing means.
The companies with the highest volume of revenue were selected for the ranking according to the data from the Statistical Register for the latest available period (for the year 2013). These enterprises were ranked by decrease in return on equity.
Return on equity (%) is the relation of company’s net profit to its equity capital. It shows how many monetary units of net profit were earned by each unit invested by company owners. It allows to determine the effectiveness of use of the capital invested by the owners.
There are no recommended or specified values prescribed for the mentioned ratio, because its values vary strongly depending on the branch, where each concrete enterprise conducts business.
For getting of the most comprehensive and fair picture of the financial standing of an enterprise it is necessary to pay attention not only to average values of profit, but also to all available combination of financial data.
| № | Name | Region | Revenues, in mln RUB, for 2013 | Return on equity, % | Solvency index GLOBAS-i® |
|---|---|---|---|---|---|
| 1 | Henkel Rus LLC INN 7702691545 |
Moscow | 45 668,8 | 57,0 | 186 the highest |
| 2 | Tyanshi LLC INN 7702745423 |
Moscow | 1 997,8 | 41,0 | 249 high |
| 3 | Stupinsky Khimichesky zavod CJSC INN 5045022211 |
Moscow region | 1 542,6 | 29,7 | 155 the highest |
| 4 | Rekitt Benkizer LLC INN 7705495411 |
Moscow | 12 901,6 | 25,6 | 213 high |
| 5 | Zavod sintanolov LLC INN 5260123469 |
Nizhnii Novgorod region | 3 917,6 | 20,4 | 197 the highest |
| 6 | SIBIAR OJSC INN 5404105343 |
Novosibirsk region | 1 885,3 | 20,3 | 155 the highest |
| 7 | Aist CJSC INN 7830001596 |
Saint-Petersburg | 2 534,1 | 13,5 | 215 high |
| 8 | Nefis Cosmetiks OJSC INN 1653005126 |
Republic of Tatarstan | 9 970,0 | 5,2 | 247 high |
| 9 | Procter and Gamble – Novomoskovsk LLC INN 7101006354 |
Tula region | 24 842,3 | 4,1 | 195 the highest |
| 10 | Kompaniya Klever LLC INN 7730633418 |
Moscow | 2 706,9 | 0,8 | 307 satisfactory |

Picture 1. Return on equity and revenues of the largest companies, producing household chemistry (TOP-10)
The revenues of the largest Russian manufacturers of cleaning products and washing means (TOP-10) made 108,0 bln RUB, according to the latest published annual financial statement, that gives about 81% of the market in monetary terms. Cumulative turnover of enterprises of the TOP-10 list increased by 4,1% to the previous year.
The average return on equity is 21,8% (according to the TOP-10 list). All market leaders have positive value of the ratio, this points to the fact that companies of the rating have net profit.
Henkel Rus LLC showed the highest value of the return on equity (57%); the enterprise is the largest manufacture of household chemistry on annual revenue in the country.
Henkel dominates as well in consumer, as in industrial sector due to such known brands as Persil, Schwarzkopf and Loctite. The company works in three business-lines: Laundry & Home Care, Beauty Care and Adhesive Technologies.
According to the independent estimation of the Information agency Credinform, nine from ten participants of the TOP-10 list got high and the highest solvency index, this points to that the enterprises can pay off their debts in time and fully, while risk of default is minimal.
«Kompaniya Klever LLC» has satisfactory solvency index, that signals to a potential investor that it is necessary to attract supplementary guarantees on purposes of credit granting and business cooperation.