Information agency Credinform presents the ranking of the largest Russian machines and machine-tool equipment manufacturers on debt ratio. The largest by revenue companies in this industry for the last available in the Statistical register period (2014) were taken for the investigation. Further the TOP-10 enterprises were ranked in the ascending order of debt ratio value (Table 1).
Debt ratio is one of the financial stability ratios. The ratios of this group are the most interesting in terms of exploring the possibility of granting the long-term loans or investing as it characterizes the possibility of the company to meet its long-term obligations. Thus, the debt ratio is calculated as a ratio of total borrowed funds to equity capital and shows how many units of borrowed funds the company had attracted to each unit of own sources of financing.
The recommended value of the ratio is less than 1. The debt to assets ratio should not be negative, that’s why the ratio value from 0 to 1 is one of the indicators of company’s high ability to meet its obligations.
Taking into account the actual position of economy in the whole as well as industries, experts of the Information agency Credinform developed and implemented in the Information and Analytical system Globas- i® the calculation of financial ratios practical values, which can be considered normal for their industry. Practical value of the Debt ratio for machine-tool manufacture ranges from 0,01 to 8,75.
|Name, Tax number, Region||Net profit (loss) 2014, th RUB||Revenue 2014, th RUB||Revenue 2014 to 2013, %||Debt ratio, (х)||Solvency index Globas-i|
|ZAO NPF INZHENERNY I TEKHNOLOGICHESKY SERVIS
Tax number 7806013625
|86 308||1 148 789||93||0,19||238 High|
Tax number 6229009163
|156 429||2 767 065||119||0,47||214 High|
Tax number 3662118923
|17 673||2 312 706||257||2,41||248 High|
Tax number 6232000019
|3 519||509 521||69||2,45||272 High|
|PELCOM DUBNA MACHINE-BUILDING FACTORY LTD.
Tax number 5010025437
|-101 664||416 879||42||2,82||317 Satisfactory|
|LLC NPO STANKOSTROENIE
Tax number 268061504
Republic of Bashkortostan
|7 332||632 194||126||6,12||299 High|
Tax number 6027076488
|578||727 007||90||9,89||304 Satisfactory|
Tax number 7715555765
|1 458||663 202||102||32,63||207 High|
|LLC POWER PRESS WORKS
Tax number 2221202506
|170||663 492||87||305,01||265 High|
|LLC SAVELOVSKI MACHINE BUILDING PLANT
Tax number 7704802518
|-675 445||677 468||135||-2,89||355 Satisfactory|
The obtained results give evidence to the fact that the debt ratio of 2 companies from the TOP-10 - ZAO NPF INZHENERNY I TEKHNOLOGICHESKY SERVIS and PAO TJAZHPRESSMASH satisfy the recommended standards. The following 3 companies PAO TJAZHMEKHPRESS, PAO SASTA and PELCOM DUBNA MACHINE-BUILDING FACTORY LTD. have the indicator which stays within the practical standard. The rest 4 companies show the ratio values from 6,12 to 305,01. The debt ratio of LLC SAVELOVSKI MACHINE BUILDING PLANT has a negative value. Total borrowed assets of this company exceed the equity amount and the losses in 2014 which amounted to more than 600 million RUB are commensurate with the earned revenue.
The industry-average indicator amounted to 5,07. All the above mentioned speaks for high debt load of both companies in the bottom lines of the Top-10 and companies in the industry in the whole.
7 companies of the TOP-10 were given the high solvency index Globas-i® by the complex of financial and nonfinancial indicators, which characterizes them as financially stable. PELCOM DUBNA MACHINE-BUILDING FACTORY LTD., NAO PSKOVELEKTROSVAR and LLC SAVELOVSKI MACHINE BUILDING PLANT were given the satisfactory solvency index Globas-i®. It is first of all connected with losses in 2013-2014 and revenue volume reduction.
Figure 1. Debt ratio of machines and machine-tools manufacturers (TOP-10)
The largest by revenue companies in this industry for 2014 PAO TJAZHPRESSMASH and PAO TJAZHMEKHPRESS are placed on the second and third spots of the ranking with debt indicators that equal to 0,47 and 2,41 respectively. The total revenue of these companies for 2014 amounted to more than 5 billion RUB or 48% in the total volume of revenue by the TOP-10. ZAO NPF INZHENERNY I TEKHNOLOGICHESKY SERVIS shows the best indicator value 0,19.
The total revenue volume of the TOP-10 for 2014 amounted to 10,5 billion RUB, which is by 12% greater than the same indicator for 2013.
The respectively balanced distribution of machine-tools enterprises along Russia is important to be noted. The biggest amount of these companies is registered in Moscow, Ryazan, Moscow and Orenburg regions.
Figure 2. The Federal State Statistics Service (Rosstat) data on manufacture of cutting and woodworking machines in 2010-2015 (piece)
Thus for the last full 6 years in a row the biggest amount of machines was manufactured in 2013. The gain in production output in 2013 to 2010 amounted to 49%. Production output in 2015 to 2010 and 2013 amounted to 144% and 97% respectively.
The biggest share of the manufactured machines in 2015 in the nomenclature accrues to: woodworking machines – 29%; threading and nut-threading cutting machines – 18%; woodworking bandsaw machines – 9%; woodworking machines designed for the certain industry – 9%; machines for deflashing, tool grinding, polishing, finishing (honing), cutting or planning machines or for other types of metalworking – 9%; beam-pumping unit for the oil industry.
Statistics of macroeconomic indicators in Russia for 6 months (October-December of 2015 and January-March of 2016) confirms opinion of experts that the peak of crisis passed in 2015 and economic growth is renewed (look at table 1). Positive tendencies in 2016 are noticed in agriculture, railway transportation, charged services to citizens, partly in retail trade. Indexes of consumer prices and manufacturers prices of industrial goods showed stable dynamics to decrease. Along with that, economic problems affected the indicators of employment – number of unemployed keeps growing.
|October 2015 г.||November 2015 г.||December 2015 г.||January 2016 г.||February 2016 г.||March 2016 г.|
|Gross domestic product, bln RUB||53 361,3||80412,5||80 804,3|
|Industrial production index , in % to the same month of the previous year||96,4||96,5||95,5||97,3||101||99,5|
|Agricultural products, bln RUB||721,8||471,2||211,4||159||179,5||262,2|
|Freight turnover, bln t-km||459,1||443,2||458,6||428,3||405,6||432,2|
|Which includes: railway transport||198,6||196,9||202||182,9||185||197,8|
|Retail turnover, bln RUB||2 378,3||2 366,9||2 865||2 125,1||2 086,4||2 230,1|
|Volume of charged services to citizens, bln RUB||675,8||676,9||718,8||641,1||660,9||682|
|Foreign trade turnover, bln USD||43,1||44,4||42||45,9||27,4||33|
|Which includes: export of goods||26,4||27,2||25,5||28,4||17,6||20,2|
|import of goods||16,8||17,2||16,4||17,4||9,7||12,8|
|Investment in equity, bln RUB||1 547,6||1 446,8||2 460,3||14555,91)|
|Consumer price index, in % to the same month of the previous year||115,6||115||112,9||109,8||108,1||107,3|
|Industrial goods manufacturers price index, in % to the same month of the previous year||114,2||113,9||110,7||107,5||103,5||100,8|
|Real disposable financial, in % to the same month of the previous year||94,4||94,6||99,3||93,7||93,1||98,2|
|Average monthly salary of corporate employees: nominal, RUB||33 240||33 857||42 684||32 122||32 990||35 570|
|real, in % to the same month of the previous year||89,1||91||90||93,9||97,4||101,6|
|Total number of the unemployed, mln people||4,3||4,4||4,4||4,4||4,4||4,6|
|Number of legally registered unemployed, mln people||0,9||0,9||1||1||1,1||1,1|
Note: 1) data on January-February of 2015
Inspite of positive tendencies, there are grounds to believe that economic recovery will be delayed. It is caused by the following factors: low oil prices, weak national currency, high inflation and interest rate, deficit of investment, longtime realization of import substitution program, low purchasing ability and others. It should be noted that among mentioned factors there are system imbalances that includes dependency on oil prices, sensitiveness to speculative capital flows and inefficiency of basic economic policy tools.
The Russian rating agency ACRA, taking into account current economic situation, has released their first macroforecast that covers the period from 2016 to 2020. In 2016 the agency forecasts oil price 39 USD per barrel at average, decrease in GDP - 1,8%, investment decrease - to 5,2%, rouble flactuation at 68-71 RUB./$, inflation in the amount of 7,2%. According to ACRA, the industrial production growth will start not until 2017 and will not exceed 1% per year.