Information agency Credinform has prepared a review of activity trends of the largest companies of the real economy sector in Belgorod region.

The largest companies of Belgorod region (ТОP-1000) in terms of annual revenue were selected according to the data from the Statistical Register for the latest available periods (2012 - 2017). The analysis was based on data of the Information and Analytical system Globas.

Net assets is a ratio reflecting the real value of company's property. It is calculated annually as the difference between assets on the enterprise balance and its debt obligations. The ratio is considered negative (insufficiency of property), if company’s debt exceeds the value of its property.

The largest company in terms of net assets is JSC STOILENSKY GOK. In 2017 net assets of the company amounted to more than 74 billion RUB. The smallest size of net assets in TOP-1000 had LLC METALL-GROUP, which is in process of being wound up since 22.03.2018. The lack of property of the company was expressed in negative terms - 7,4 billion RUB.

For the last five years, the average values of TOP-1000 net assets showed the growing tendency (Picture 1).

Picture 1. Change in average net assets value of ТОP-1000 companies in 2013 – 2017

For the last five years, the share of ТОP-1000 enterprises with lack of property is growing (Picture 2).

Picture 2. The share of enterprises with negative net assets value in ТОP-1000

Sales revenue
In 2017, the total revenue of 10 largest companies amounted to 41% from ТОP-1000 total revenue (Picture 3). This fact testifies the high level of industrial concentration in Belgorod region.

Picture 3. Shares of TOP-10 in TOP-1000 total revenue for 2017

In general, the growing trend in sales revenue is observed (Picture 4).

Picture 4. Change in average revenue of TOP-1000 in 2013 – 2017

Profit and loss

The largest company in terms of net profit is JSC LEBEDINSKIY MINING AND PROCESSING PLANT. In 2017 the company’s profit amounted to 104,5 billion RUB

For the last five years, the average profit values of TOP-1000 show the growing tendency (Picture 5).

Picture 5. Change in average profit of TOP-1000 in 2013 – 2017

Over a five-year period, the average net profit values of ТОP-1000 show the growing tendency, along with this the average net loss is also growing (Picture 6).

Picture 6. Change in average net profit/loss of ТОP-1000 companies in 2013 – 2017

Main financial ratios
For the last five years, the average values of the current liquidity ratio were higher than the recommended values - from 1,0 to 2,0, with downward trend (Picture 7).

The current liquidity ratio (ratio of total working capital to short-term liabilities) shows the sufficiency of company’s assets to meet short-term obligations.

Picture 7. Change in average values of current liquidity ratio of TOP-1000 companies in 2013 – 2017

For the last five years, the high level of the average values of ROI ratio with downward trend is observed (Picture 8).

The ROI ratio is calculated as a ratio of net profit to sum of stockholder equity and long-term liabilities and shows the return from equity involved in commercial activities and long-term borrowed funds.

Picture 8. Change in average values of ROI ratio in 2013 – 2017

Assets turnover ratio is the ratio of sales revenue and company’s average total assets for a period. It characterizes the effectiveness of using of all available resources, regardless the source of their attraction. The ratio shows how many times per year the full cycle of production and circulation is performed, generating the corresponding effect in the form of profit.

For the last five years, this business activity ratio demonstrated the downward trend (Picture 9).

Picture 9. Change in average values of assets turnover ratio of TOP-1000 companies in 2013 – 2017

Small businesses
70% of ТОP-1000 companies are registered in the Unified register of small and medium-sized enterprises of the Russian Federal Tax Service. Herein, their share in TOP-1000 total revenue amounted to 14% that is lower than the national average value (Picture 10).

Picture 10. Shares of small and medium-sized enterprises in ТОP-1000

Main regions of activity
ТОP-1000 companies are unequally located across the country and registered in 22 regions of Russia. Almost 71% of the largest enterprises in terms of revenue are located in Belgorod, Stary Oskol, Alekseevsky and Gubkin districts (Picture 11).

Picture 11. Distribution of TOP-1000 revenue by the districts of Belgorod region

Financial position score
An assessment of the financial position of TOP-1000 companies shows that more than a half of them have stable or above average financial position (Picture 12).

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

Solvency index Globas
Most of TOP-1000 companies got superior/high or strong/medium Solvency index Globas, this fact shows the ability of the companies to meet their obligations in time and fully (Picture 13).

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

Industrial production index
According to the Federal Service of State Statistics, there is an increasing trend in the industrial production index in Belgorod region during 12 months of 2018-2019 (Picture 14). Herewith the average index from month to month amounted to 100,5%.

Picture 14. Industrial production index in Belgorod region in 2018-2019, month by month (%)

According to the same data, the share of enterprises of Belgorod region in the amount of revenue from the sale of goods, works, services made 0,85% countrywide in 2018.

Conclusion
A complex assessment of activity of the largest companies of Belgorod region real economy, taking into account the main indexes, financial ratios and indicators, demonstrates the presence of positive trends (Table 1).

Table 1. Favorable and unfavorable trends, assessment factors

Trends and assessment factors	Relative share, %
Growth/drawdown rate of average net assets value	10
Increase / decrease in the share of enterprises with negative net assets	-10
The level of capital concentration	-10
Growth/drawdown rate of average revenue	10
Growth/drawdown rate of average net profit (loss)	10
Increase / decrease in average net profit of companies	10
Increase / decrease in average net loss of companies	-10
Increase / decrease in average values of current liquidity ratio	-10
Increase / decrease in average values of ROI ratio	-10
Increase / decrease in average values of assets turnover ratio, times	-10
Share of small and medium-sized businesses by revenue more than 22%	-10
Regional concentration	10
Financial position (the largest share)	10
Solvency index Globas (the largest share)	10
Industrial production index	10
Average value of factors	0,7

favorable trend (factor), unfavorable trend (factor)

As an extension of limitation of access to potentially “dangerous” information with regard to possible imposition of secondary sanctions by some foreign states, data from the Unified State Register of Legal Entities (hereinafter EGRUL) on companies under sanctions and Crimean legal entities will be closed. The Resolution of the Government of Russia #729 as of June 06, 2019 entitles not to disclose shareholders, management and licenses of mentioned legal entities in EGRUL in following cases:

• existing restrictions from foreign countries and legal entities;
• the legal entity is credit institution for the state defense order;
• legal entities, including branches and representative offices, are located in the Republic of Crimea or Sevastopol.

The final decision on voluntary closure will be made by legal entities through the application. The application form will be prepared by the Federal tax service before September 30, 2019.

About 1000 Russian legal entities are under primary international sanctions imposed by foreign states.

According to the Information and Analytical System Globas, a little over 44 thousand active legal entities are registered in the Republic of Crimea and Sevastopol. Comprehensive information about them is available for subscribers of the System.