Current liquidity ratio of the largest Russian holding management companies

ranking 02.09.2019

Information agency Credinform presents ranking of the largest Russian holding management companies. Enterprises with the largest volume of annual revenue (TOP-10), engaged in management of holding companies, financial industrial groups and management consultancy, were selected for the analysis, according to the data from the Statistical Register for the latest available periods (for 2015-2017). Then they were ranked by decrease in current liquidity ratio (Table 1). The analysis was made on the basis of the data of the Information and Analytical system Globas.

The current liquidity ratio(х) is calculated as the relation of the sum of working assets to short-term liabilities.

Recommenmded value is from 1,0 to 2,0. Value of the indicator less than 1,0 demonstrates that short-term liabilities exceed current working assets. Therefore, lower limit of the interval reveals need to provide sufficiency of working assets for complete payment of short-term liabilities. Otherwise, it may cause bankruptcy of an enterprise. However, significant increase of short-term assets over liabilities can demonstrate impairment of capital structure and irrational investments of funds.

The experts of the Information agency Credinform, taking into account the actual situation both in the economy as a whole and in sectors, has developed and implemented 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 holding management companies practical value of the current liquidity ratio amounted from 0,71 to 5,17 in 2017.

For getting of the most comprehensive and fair picture of the financial standing of an enterprise it is necessary to pay attention to all combination of indicators and financial ratios.

Table 1. Net profit, revenue, current liquidity ratio, solvency index Globas of the largest Russian holding management companies (TOP-10)
Name, INN, region Revenue, billion RUB Net profit (loss), billion RUB Current liquidity rsatio (x), from 1,0 to 2,0 Solvency index Globas
2016 2017 2018* 2016 2017 2018* 2016 2017 2018*
1 2 3 4 5 6 7 8 9 10 11
AO ROSNEFTEGAZ
INN 7705630445 Moscow
up800,39 down78,23 up142,94 down-90,44 up33,85 up177,95 down1,90 up2802,80 down269,24 175 High
JSC RUSSIAN GRIDS
INN 7728662669 Moscow
up26,66 down26,51 up27,19 up222,44 down-13,24 up-11,55 up9,17 up17,47 up36,22 226 Strong
JSC RUSSIAN HELICOPTERS
INN 7731559044 Moscow
up45,20 down36,26 down35,53 up15,46 up15,71 up19,97 up1,36 up1,59 up1,65 148 Superior
JSC CONCERN RADIO-ELECTRONIC TECHNOLOGIES
INN 7703695246 Moscow
up24,98 up39,83 down28,71 down1,17 up4,38 up7,96 up1,50 down1,38 up1,79 151 Superior
JSC United Engine Corporation
INN 7731644035 Moscow
up32,28 up34,44 up42,18 up0,64 up1,74 up7,74 up1,25 down1,23 down1,15 158 Superior
LLC SET - SVYAZNOY
INN 7714617793 Moscow
up59,17 up63,32 down48,32 down-4,26 up-0,89 down-2,68 up1,35 down1,20 down0,84 299 Medium
JSC Voentorg
INN 7704726183 Moscow
up66,35 up73,90 down72,06 up0,03 up0,04 up0,05 up1,16 down1,15 up1,23 210 Strong
LLC BUSINESS-FINANCE
INN 7707572492 Moscow
up2158,73 up3129,78 down0,00 down0,14 up0,57 down0,45 down1,09 down1,08 up1,48 269 Medium
LLC PROCTER & GAMBLE
INN 7701032910 Moscow
down52,38 up53,73 down2,37 down0,32 up7,99 down1,23 up0,63 up0,98 up6,59 196 High
JSC HOLDING COMPANY METALLOINVEST
INN 7705392230 Moscow
up221,47 down86,66 down69,98 up207,65 down76,93 down45,52 up10,16 down0,94 down0,44 271 Medium
Total for TOP-10 companies up3487,61 up3622,65 down469,28 up353,14 down127,08 up246,65    
Average value for TOP-10 companies up348,76 up362,26 down46,93 up35,31 down12,71 up24,66 down2,96 up282,98 32,06
Average industrial value up0,09 down0,07   up0,04 down0,01   down1,31 down1,01  

*) data for 2018 are given for reference

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

Average value of the current liquidity ratio of the TOP-10 group is significantly higher than the average industrial, recommended and practical values of 2017. Five companies have shown results within the interval of the recommended value in 2018.

Picture 1. Current liquidity ratio and revenue of the largest Russian holding management companies (TOP-10) Picture 1. Current liquidity ratio and revenue of the largest Russian holding management companies (TOP-10)

Over a ten-year period average industrial values of the current liquidity ratio were, in general, within the interval of recommended values with increasing tendency. (Picture 2).

Picture 2. Change in the average industrial values of the current liquidity ratio of Russian holding management companies in 2008 – 2017 Picture 2. Change in the average industrial values of the current liquidity ratio of Russian holding management companies in 2008 – 2017