Debts and assets of social services

Information agency Credinform has prepared a ranking of the largest social service companies in Russia. The companies rendering social services to senior citizens and disabled people, providing child and social care etc. (TOP-10) with the largest annual revenue were selected for the ranking, according to the data from the Statistical Register and Federal Tax Service for the latest available accounting periods (2017 - 2019). Then the enterprises were ranked by the debt-to-assets ratio (Table 1). The analysis was based on the data from the Information and Analytical system Globas.

Debt-to-assets ratio indicates the share of the company’s assets being financed by loans. Standard value of the ratio is from 0.2 to 0.5.

Sales revenue and net profit demonstrate a company’s size and its business efficiency, and debt to solvency ratio indicates the risk of insolvency.

A value that exceeds the maximum standard value indicates an excessive loan overburden that may facilitate development, but as well may have a negative impact on stability of corporate funds. A value lower than the minimum standard value may speak of a conservative financial management strategy and of an excessive caution in raising new debt funds.

In order to get the most comprehensive and fair picture of the financial standing of an enterprise it is necessary to pay attention to all combination of financial indicators and company’s ratios.

Table 1. Net profit, revenue, debt-to-assets ratio, solvency index Globas of the largest social service companies in Russia (TOP-10)

Name, INN, region	Revenue, million RUB		Net profit (loss), million RUB		Debt-to-assets ratio (x), from 0,2 to 0,5		Solvency index Globas
	2018	2019	2018	2019	2018	2019
1	2	3	4	5	6	7	8
BF NO BLAGOTVORITELNYI FOND PODDERZHKI VETERANOV TRUDA NADEZHDA INN 7714321154 Moscow	196,48	238,65	14,21	11,76	0,12	0,00	257 Medium
OOO PROSPEKT INN 6229063499 Ryazan region	145,46	138,18	9,35	10,55	0,06	0,07	196 High
OOO DOBROE DELO INN 7733241842 Moscow	44,52	164,72	15,12	28,10	0,17	0,12	231 Strong
OOO UPRAVLYAYUSHCHAYA KOMPANIYA NOVOLETIYE INN 5904182219 Perm krai	548,33	521,06	139,50	123,85	0,23	0,19	173 Superior
OOO GALOKOM INN 7733806570 Moscow	143,05	160,89	27,02	112,54	0,11	0,27	248 Strong
OOO MEDFARMA-SERVIS INN 3525255572 Vologda region	225,36	214,55	15,23	23,89	0,22	0,30	185 High
OOO GARMONIYA INN 7840317422 Saint Petersburg	134,04	201,54	5,84	38,00	0,96	0,74	191 High
OOO CENTR PROEKTIROVANIYA OBUVI SPETSIALNOGO NAZNACHENIYA ORTOMODA INN 7718195662 Moscow	0,00	265,13	0,00	11,60		0,81	254 Medium
ANO EKSPERTNY INSTITUT SOTSIALNYKH ISSLEDOVANII INN 7703424479 Moscow	18,29	324,71	16,32	33,69	0,17	1,00	262 Medium
OOO DOVERIYE INN 6168004976 Rostov region	340,72	342,81	-232,08	52,77	1,12	1,11	234 Strong
Average value for TOP-10	179,62	257,22	1,05	44,68	0,35	0,46
Industry average value	1,52	2,78	2,32	71,96	0,03	0,99

improvement compared to prior period, decline compared to prior period

Average value of debt-to-assets ratio of TOP-10 companies is lower than the average industry one. Two companies have the standard value in 2019.

Picture 1. Debt-to-assets ratio and revenue of the largest social service companies in Russia (TOP-10)

During the decade, average industry values of debt-to-assets ratio were on the whole beyond the limits of the standard value and had a tendency to improve (Picture 2)

Picture 2. Change of industry average values of debt-to-assets ratio of social service companies in Russia in 2010 – 2019