Information agency Credinform represents a ranking of the largest Russian telecommunication companies. The enterprises 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 (2015 – 2017). Then they were ranked by accounts payable turnover ratio (Table 1). The analysis is based on the data of the Information and Analytical system Globas.

Accounts payable turnover ratio (days) is calculated as the ratio of the average amount of accounts payable for the period to sales revenue. The ratio shows for how many days during the year the company has repaid the average amount of accounts payable.

The indicator reflects the process of repayment of debt to counterparties and is calculated to estimate cash flows. It helps to conclude about the efficiency of the company and chosen financial strategy.

The lower is the ratio, the faster the company settles accounts with suppliers. The increase in turnover may indicate both problems with payment of bills and more efficient cooperation with suppliers, providing more profitable, deferred payment schedule and using accounts payable as a source of cheap financial resources. Taking into account the actual situation both in the economy as a whole and in the sectors, the experts of the Information agency Credinform has developed and introduced in the Information and Analytical system Globas the calculation of practical values of financial ratios that can be recognized as normal for a particular industry. For telecommunication companies, the practical value of accounts payable turnover ratio is up to 88,40 days in 2017.

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.

Table 1. Net profit, revenue, accounts payable turnover ratio, solvency index Globas of the largest Russian telecommunication companies (TOP-10)

Name, INN, region, business scope	Revenue, billion RUB		Net profit (loss), billion RUB		Accounts payable turnover, days		Solvency index Globas
	2016	2017	2016	2017	2016	2017
1	2	3	4	5	6	7	8
JSC MEGAFON INN 7812014560 Moscow Activities in the field of communication based on wired technologies	286,7	296,7	36,6	5,3	49,54	53,66	235 Strong
SCARTEL, LLC INN 7701725181 Moscow Provision of telephone services	21,0	28,5	-1,4	6,9	65,45	55,09	248 Strong
JSC VIMPEL-COMMUNICATIONS INN 7713076301 Moscow Provision of mobile services for voice transmission	272,4	275,3	19,8	13,9	56,99	55,65	188 High
LLC T2 MOBILE INN 7743895280 Moscow Activities in the field of communication based on wireless technologies In process of reorganization by spin-off since 08.07.2016	100,3	114,9	-8,2	-1,6	98,04	64,26	332 Adequate
JSC ROSTELECOM INN 7707049388 Saint Petersburg Activities in the field of communication based on wired technologies	282,7	291,0	10,9	8,9	72,48	71,20	247 Strong
JSC MOBILE TELESYSTEMS (MTS) INN 7740000076 Moscow Activities in the field of communication based on wireless technologies In process of reorganization in the form of merger of other legal entities since 04.07.2018	314,3	323,8	50,7	127,3	80,49	71,47	207 Strong
JSC ER-TELECOM HOLDING INN 5902202276 Perm territory Activities in the field of communication based on wired technologies	19,4	24,7	0,1	0,3	74,84	72,84	241 Strong
JSC MOSCOW CITY TELEPHONE NETWORK (MGTS) INN 7710016640 Moscow Activities in the field of communication based on wired technologies Cases on recognition the company bankrupt are considered	39,5	38,9	12,1	16,1	64,47	74,95	550 Insufficient
JSC TELECOMMUNICATION FOR OIL EXTRACTION AND TRANSPORTATION INDUSTRIES (Svyaztransneft) INN 7723011906 Moscow Activities in the field of communication based on wired technologies	28,6	30,1	5,1	1,5	55,73	95,20	226 Strong
FGUP Russian Television and Radio Broadcasting Network (RTRS) INN 7717127211 Moscow Activities in the field of communication based on wireless technologies In process of reorganization by spin-off since 04.07.2016	24,2	25,3	-0,4	0,3	125,52	132,82	205 Strong
Total for TOP-10 companies	1389,1	1449,3	125,2	178,8
Average value for TOP-10 companies	138,9	144,9	12,5	17,9	74,36	74,72
Industry average value	184,9	195,7	0,02	0,02	86,37	80,25

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

The average indicator of accounts payable turnover ratio of TOP-10 companies exceeds the practical and average values. In 2017, six companies of TOP-10 increased their figures in comparison with the previous period.

Picture 1. Accounts payable turnover ratio and revenue of the largest Russian telecommunication companies (TOP-10)

Over the past 10 years, the industry average values of accounts payable turnover ratio have a trend to decrease (Picture 2).

Picture 2. Change in the industry average values of accounts payable turnover ratio of the largest Russian telecommunication companies in 2008 – 2017