Solvency ratio of the largest Russian fishery enterprises

ranking 01.04.2016

Information agency Credinform prepared a ranking of the major companies in the RF engaged in fishery.

Companies with the highest volume of revenue were selected for this ranking according to the data from the Statistical Register for the latest available period (for the year 2014). The enterprises were ranked by decrease in solvency ratio (see table 1).

Solvency ratio (x) is equity capital to total assets. It shows the company's dependence on external loans. Recommended value: > 0.5. 

The value below the minimum limit means high dependence on external sources of funds that could lead to a liquidity crisis and the precarious financial situation of the company in case of the worsening market conditions.

For the most complete and objective view of the financial condition of the enterprise it is necessary to pay attention not only to the average rates in the industry, but also to the presented set of financial indicators and ratios of the company.

Table 1. Revenue, solvency ratio, solvency index Globas-i of the largest Russian fishery enterprises (Top-10)
NameRegionRevenue 2014 th RUBRevenue2014 to 2013, %%Solvency ratio (х)Solvency index Globas-i®
1 JSC Atlantrybflot Scientific-Industrial Association
INN 3905000203
Kaliningrad region 1 328 400 131 0,85 178 The highest
2 NORTH WEST CRAB-CATCHING COMPANY LTD.
INN 5190119530
Murmansk region 1 268 763 168 0,50 173 The highest
3 OPEN JOINT STOCK COMPANY ARKHANGELSK TRAWFLEET
INN 2901128602
Arkhangelsk region 3 723 113 154 0,36 214 High
4 CJSC FISHING COLLECTIVE FARM VOSTOK-1
INN 2536010639
Primorye territory 1 370 474 122 0,19 312 Satisfactory
5 Joint Stock Company Fishing Fleet FOR
INN 3908021441
Kaliningrad region 1 397 778 112 0,10 280 High
6 ООО MARITIME STAR
INN 3903017709
Kaliningrad region 2 386 716 135 0,08 230 High
7 PACIFIC FISHERY COMPANY CO., LTD
INN 4909053889
Magadan region 1 348 839 124 -0,51 250 High
8 JOINT STOCK COMPANY INTRAROS
INN 2537008664
Primorye territory 2 371 015 121 -0,53 261 High
9 LIMITED LIABILITY COMPANY ROLIZ
INN 2536247860
Primorye territory 2 866 516 133 -0,61 296 High
10 JSC Pacific department of fish survey and research fleet
INN 2536053382
Primorye territory 3 140 046 108 -0,79 283 High

Solvency ratio of the largest Russian fishery enterprises (Top-10) varies from 0,85 to -0,79. The industry average value in 2014 was 0,26.  

Solvency ratios of only two enterprises from the Top-10 meet the recommended norms: JSC Atlantrybflot Scientific-Industrial Association (x0,85) and NORTH WEST CRAB-CATCHING COMPANY LTD. (x0,50). These companies got the highest solvency index Globas-i. This indicates high ability to fulfil the debt liabilities. 

Other Top-10 companies are highly depend on raise funds and have solvency index less than 0,5. Their capital does not cover the amount of liabilities. In case of lump-sum on credits the enterprises may have difficulties with repayment. Therefore, the companies in this sector need to proportion intentions to rapidly increase market presence under the reduction of competition of foreign companies to the ability to deal with high debt load.  

Picture 1. Solvency ratio and revenue of the largest Russian fishery enterprises (Top-10)

Solvency ratio and revenue of the largest Russian fishery enterprises

According to the latest published annual financial statements for 2014, total annual revenue of the Top-10 companies amounted to 21,2 bln RUB, which is by 29% higher than the same companies’ figures in 2013. At the same time the growth rate of revenue of the Top-200 companies engaged in fishing industry over the same period was only 17%. This may indicates the concentration of the fish production in large companies and reduction in the number of small companies. For example, 8% of companies from the same Top-200 enterprises are at varying stages of reorganization or liquidation.

Rosstat data (Picture 2) show the reverse trend of reduction in physical volume of fish production in 2014 – 2015. Thus, the decrease in 2014 relative to 2013 was almost 20% and in 2015 to 2014 - almost 15%.

Picture 2. Production of live fish, fresh or chilled fish, frozen, chilled or fresh fillets in 2010 - 2015, tons (Rosstat data)

Production of live fish, fresh or chilled fish, frozen, chilled or fresh fillets in 2010 - 2015

Nine companies from the Top-10 of the largest Russian fishery enterprises got high and the highest solvency index Globas-i® by the set of financial and other indicators. This indicates the ability to timely and fully fulfil their debt liabilities with minimum default risk.