Information agency Credinform prepared a ranking of enterprises-manufacturers of sport articles.
The companies with highest volume of revenue were selected for this ranking according to data from the Statistical Register for the latest available period (for the year 2012). These enterprises were ranked by decrease in asset turnover.
Asset turnover ratio is a relation of sales proceeds to the average value of company's total assets for a period. It characterizes the efficiency of use by a company of all available resources, apart from sources of their attraction. This ratio shows how many times a year the cycle of production and circulation completes, which brings a corresponding effect in the form of profit.
There is no normative value of the ratio, however, the higher is its value, the sooner gets an enterprise a profit after the completing of the whole cycle of production and circulation, the more intensive are used the assets in company’s activity. So, the value of asset turnover ratio equal to 2 shows that in the course of a year an organization gets a profit, which is twice as much as its asset value.
The low ratio value may indicate that a company uses its assets not effective enough. Such value points by no means at financial inability of an enterprise, because the more difficult are the technological process, logistics and marketing of a product (taking into account the degree of competition in the corresponding market), the slower is its manufacture and realization. At the same time, a comparative analysis of turnover ratio of two similar enterprises of the same branch may show the differences in the effectiveness of asset management; the turnover ratio of companies from different industry segments is not to be compared.
|№||Name||Region||Turnover, in mln RUB, for 2012||Asset turnover in times||Solvency index GLOBAS-i®|
|1||Novaya Lyzhnaya Fabrika LLC
|3||Start Lain LLC
|5||FIRMA LEKO LLC
|Moscowregion||518 551||2,1||199(the highest)|
|Kaluga region||649 673||1,5||217(high)|
|8||AKVA NORD FISHING LLC
|9||Sport Lain LLC
|10||NOVOVYATSKY LYZHNY KOMBINAT OJSC
|Kirov region||405 127||0,2||317(satisfactory)|
Picture. Asset turnover of the largest on revenue volume enterprises, producing sport articles (TOP-10)
Cumulative annual turnover of the first 10 organizations largest on turnover, producing sport articles, made 2 890,9 mln RUB, following the results of the latest available financial statement for the year 2012. Industry leaders accumulate 81% of sales revenue of all manufacturers of similar products.
Following companies from TOP-10 list showed the asset turnover more than thrice a year: Novaya Lyzhnaya Fabrika LLC, Sport-Maks-Invest LLC, Start Lain LLC and REI-SPORT LLC. This means that these enterprises use the assets, being at their disposal, in the production cycle most effectively. According to the independent estimation of solvency of companies, developed by the Information agency Credinform, all market leaders mentioned above have a high solvency index GLOBAS-i®. It means for investors, that the organizations can pay off their debts in time and fully, while risk of default is minimal or low.
Other participants of TOP-10 showed lower enough asset turnover, that may point at that warehouses are oversupplied, the logistics network of delivery and distribution is thought out not completely.
The largest construction of the late seven years in Sochi is well-known. But except Olympic objects there are new plants and enterprises that are launched annually in Russia. Thus, during 2013 more than 200 projects on creation of new plants were put into operation within Russia. 134 of them were started from the scratch. At the same time, the investments of RUR 1 billion for each were required in order to launch 107 objects and for 51 international investments were invited.
Figure 1. Tuapsinsky Oil Refinery
OJSC Oil Company Rosneft keeps investing in the modernization of industrial capacity. Thus, following the results of the previous year, the launch of the biggest in Russia oil refining unit in Tuapsinsky Oil Refinery became one of the most expensive projects. The total value of investments amounted to RUR 301 billion, RUR 208 billion of which have already been spent on modernization. Due to the fact that Tuapsinsky Oil Refinery is a city-forming enterprise, the launch of the first stage of the plant enabled to create nearly 400 new workplaces. In future, on completing of the construction, it is expected to increase the number of workplaces up to 700. According to the officials of the Krasnodar Krai, launch of the upgraded Tuapsinsky Oil Refinery will increase the Gross Regional Product (GRP) of the Krai on RUR 135 billion.
Figure 2. Mikheyevsky mining and concentration complex
On December 17, 2013 Mikheyevsky mining and concentration complex was launched in the Chelyabinsk region. This complex is one of the largest investment projects of the Russian copper company at the moment. The total allocated budget of the project comes out RUR 27 billion. The Mikheyevsky mining and concentration complex is for today the first large-scale project of the mining and concentration complex construction from the scratch within Russia and the former Soviet Union. Subsequently, it is planned to integrate the complex into production chain of the full range of the Russian copper company. This project enables to create more than 500 new workplaces and the target amount of tax liabilities during implementation of the project accounts for RUR 28 billion.
Figure 3. LLC Tobolsk-Polimer
The launch of the polypropylene production complex in the Tyumen Region – LLC Tobolsk-Polimer became one of the largest projects in Russian petrochemical industry. LLC Tobolsk-Polimer is a subsidiary of gas processing and petrochemical company SIBUR. The total investment volume of the project amounted to RUR 60 billion. Nearly 500 new workplaces were created on the basis of the new enterprise. It is hard to overestimate the value of this company, as it makes possible for Russia to become the exporter instead of the importer of the polypropylene. Polypropylene is the third consumable plastic in the world that is used in different industries from automobile manufacturing to hollowware industry and package printing.
Figure 4. The Big Koryazhma
The Russian paper-pulp industry has interesting investment projects, too. First of all, it is important to note 2 challenging branch modernization projects and launch of new manufacturing lines of the Ilim group – the Big Bratsk and the Big Koryazhma. The total amount of the Big Bratsk project investments accounted for more than RUR 25 billion. According to experts, introduction of the upgraded capacity enables to increase the overall production in Bratsk up to 1 billion ton per year. At the same time the new line in Bratsk will become the biggest coniferous line in the world. Therefore it will be possible to increase export of high-quality products to China. Production of the white softwood pulp should become the priority production. It is one of the most expensive kinds of pulp used as a raw material for manufacture of high-quality paper products. The cost of the Big Koryazhma project amounted to RUR 8,6 billion. Within the framework of this project the company Ilim was the first in Russia to manufacture chalk paper. The project created more than 350 new workplaces.
Figure 5. Serpukhov plant for elevator construction
Serpukhov plant for elevator construction was launched in the Moscow Region. It is the first experience of construction of such a large plant from the scratch. According to experts, the capacity of the new plant enables to move to the fore on the market during 2 years. Moreover, the need for elevators in Russia amounts to 35 thousands per year and demand for the business class elevators shows annual surplus of 16%. The volume of the project investments accounts for RUR 3 billion. Besides, the unique testing tower 33 floors high was built within the framework of the project. The tower is one in whole Europe. The launch of the plant enables to create nearly 800 new highly qualified workplaces.
It was many times mentioned that for economic growth there should be moving from extensive economy development path, concentrated in materials sector, to intensive. Due to this, it is important to develop a knowledge-intensive industry that requires investment infusions. In this regard the variety of plants, launched last year cannot but please. The launch of new plants not only generates employment, but also encourages the growth of competitive ability of domestic products.