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Solvency of textile producing companies in Russia
Credinform Information Agency offers you a ranking of solvency of Russian textile producing companies. For this ranking, the companies of textile industry with highest revenues have been selected and ranked upon reduction of solvency index. This index means the equity share in total sources of funding of organization and shows the company’s dependence on external loans.
Recommended index value – over 0.5.
| N | Name | INN | Turnover in 2011,
ml rub. | Solvency
index | GLOBAS-i®
Solvency Index |
|---|---|---|---|---|---|
| 1 | Peredovaya Tekstilshchitsa Silk Factory CJSC | 5018035099 | 1,550.31 | 0.48 | 208 (high) |
| 2 | ROSKO-Textile Assets LLC | 3702080122 | 1,835.26 | 0.47 | 264 (high) |
| 3 | Donetsk Manufacture М CJSC | 6145004835 | 796.77 | 0.19 | 279 (high) |
| 4 | Avangard OJSC | 3326001750 | 774.58 | 0.16 | 292 (high) |
| 5 | Shuya Cotton Print Factory OJSC | 3706008060 | 2,092.27 | 0.13 | 255 (high) |
| 6 | Chaykovsk Textile Company LLC | 5920015180 | 1,573.36 | 0.11 | 275 (high) |
| 7 | Bryansk Worsted Factory LLC | 3255510846 | 770.07 | 0.01 | 295 (high) |
| 8 | Teykovsky Silk and Cotton Factory LLC | 3704569864 | 3,124.19 | -0.002 | 310 (satisfactory) |
| 9 | Nevsky Prospekt LLC | 3702548837 | 919.53 | -0.03 | 294 (high) |
| 10 | Ivanovo Textile Factory CJSC | 3728026049 | 775.24 | -0.25 | 247 (high) |
No company from TOP-10 by turnover managed to achieve the mentioned ration (0.5). Only two of them have approaching value: Peredovaya Tekstilshchitsa Silk Factory CJSC and ROSKO-Textile Assets LLC. The Agency assigned high solvency index to these companies, which confirms their ability to repay their debenture timely.
The equity share of the next five companies of the ranking (Donetsk Manufacture М OJSC, Avangard OJSC, Shuya Cotton Print Factory OJSC, Chaykovsk Textile Company LLC and Bryansk Worsted Factory LLC) varies from 19% to 1%. The index value shows the potential; ability to repay debts timely. However, such low ration of solvency coefficient requires the companies to apply measures for strengthening financial positions through mobilization of diversion of funds to current assets.
Teykovsky Silk and Cotton Factory LLC, Nevsky Prospekt LLC and Ivanovo Textile Factory CJSC have negative solvency index that means negative value of their equity. In this situation, improvement of the companies’ position is possible through optimization of profit activity that is through creation of the source of equity – the retained earnings. An alternative variant for restoration of positive equity ration, and consequently the solvency index is the attraction of directed financing and receipts. In short term, the support for solvency of enterprises with negative equity is possible through high turnover of company’s assets.
Solvency means the capability of an enterprise to repay their debenture. In good financial conditions the enterprise enjoys sustainable solvency; in bad conditions, it suffers regular or permanent insolvency. The best variant is when a company always has free funds sufficient for existing liabilities. But the company retains solvency also it has insufficient free finds or has no such funds at all, but the enterprise is able to sell out its assets quickly and to pay the creditors.