Liabilities and assets in geological exploration

Information agency Credinform represents a ranking of the largest Russian exploration companies. The companies with the largest volume of annual revenue (TOP-10) were selected for the ranking, according to the data from the Statistical Register for the latest available periods (2016 - 2018). They were ranked by the ratio of assets and liabilities (Table 1). The analysis was based on the data of the Information and Analytical System Globas

The ratio of liabilities and assets indicates the share of assets funded with borrowing. The standard value for the ratio is from 0,2 to 0,5.

Sales revenue and net profit show the scale of the company and the efficiency of its business, and the ratio of liabilities and assets indicates the risk of insolvency of the company. It is especially important to consider the structure of short-term and long-term liabilities. It is not recommended to finance long-term projects through short-term loans, loans with repayment period is up to 12 months. Unforeseen circumstances can significantly affect the solvency of the company.

For the most complete and objective view of the financial condition of the enterprise, it is necessary to pay attention to the complex of indicators and financial ratios of the company.

Таблица 1. Net profit, revenue, ratio of liabilities and assets, solvency index Globas of the largest Russian exploration companies (TOP-10)

Name, INN, region	Revenue, million RUB		Net profit (loss), million RUB		Ratio of liabilities and assets (x), from 0,2 to 0,5		Solvency index Globas
	2017	2018	2017	2018	2017	2018
1	2	3	4	5	6	7	8
LLC GAZPROM NEDRA INN 7709769582 Moscow	9 345,8	8 941,2	9,3	14,2	0,18	0,17	256 Medium
LLC SLADKOVSKO-ZARECHNOE INN 5611037405 Orenburg region	5 513,8	26 848,9	1 183,2	6 571,3	0,26	0,26	196 High
JSC BASHNEFTEGEOFIZIKA INN 0275009544 Republic of Bashkortostan	12 899,0	14 229,1	765,9	1 850,5	0,52	0,43	172 Superior
LLC GAZPROMNEFT SCIENCE & TECHNOLOGY CENTRE INN 7838395487 Saint Petersburg	5 630,1	7 256,3	56,0	758,9	0,58	0,63	216 Strong
JSC ROSPAN INTERNATIONAL INN 7727004530 Yamal-Nenets autonomous district	38 231,5	51 739,0	7 166,0	16 158,6	0,75	0,73	220 Strong
JSC MARINE ARCTIC GEOLOGICAL EXPEDITION INN 5190100088 Murmansk region	5 567,0	8 928,4	147,5	151,3	0,87	0,91	179 High
JSC GEOTECH SEISMIC SERVICES INN 7203215460 Tyumen region	13 914,3	14 055,0	-2 018,7	80,9	0,90	0,92	262 Medium
LLC GAZPROM GEOLOGORAZVEDKA INN 2460066149 Tyumen region	47 443,4	44 940,3	89,4	135,8	0,97	0,96	235 Strong
LLC ZARNESTSERVICE INN 7717108843 Moscow	17 372,0	17 372,0	-140,8	223,0	1,01	0,99	252 Medium
LLC VOSTOKGEOLOGIA INN 7536076678 Zabaikalye territory	19 705,2	9 466,3	-498,4	-831,0	0,88	0,99	311 Adequate
Average value for TOP-10	17 562,2	22 418,6	675,9	2 511,4	0,69	0,70
Industry average value	164,9	202,9	-1,6	-5,4	0,85	0,81

growth of indicator to the previous period, decrease of indicator to the previous period

Over the past 10 years, the industry average values of the ratio of liabilities and assets have a trend to decrease toward the standard value (Picture 2).

Picture 1. Ratio of liabilities and assets, and revenue of the largest Russian exploration companies (TOP-10)

Over the past 10 years, the industry average values of the ratio of liabilities and assets have a trend to decrease toward the standard value (Picture 2).

Picture 2. Change in the industry average values of the ratio of liabilities and assets of the largest Russian exploration companies in 2009 – 2018