Credit protection of the largest Russian manufacturers of mineral water

ranking 29.02.2016

Information agency Credinform prepared a ranking of the largest Russian manufacturers of mineral water.   

The TOP-10 list of enterprises was drawn up for the ranking on the annual volume of revenue for the latest available accounting period available in the Statistical Register (for the year 2014); following data were calculated: the dynamics of revenue related to the previous period and credit protection ratio (s. Table 1). 

Credit protection ratio (x) is the relation of pre-tax earnings and interest on loans to the amount of interest due. It characterizes the degree of protection of creditors against non-payment of interests for a granted credit and shows how many times during the reporting period a company earned money to pay the interests on loans. The recommended value is: > 1. 

Thus, if the ratio is less than 1, it testifies that a company has no possibility to repay all credit obligations simultaneously. This, in its turn, may lead to financial instability of business in today's difficult economic conditions, especially during the fall in effective demand of the population. 

If there is no value of the considered indicator – there are no borrowings in the report of an enterprise, and, consequently, no interests payable to creditors. This in itself can be a positive factor, but it requires access to the capital market for a successful business, market retention, introduction of innovation solutions. Therefore, the task of financial management is the observance of a reasonable balance between development and its financial well-being. 

For getting of more comprehensive and fair picture of financial standing of an enterprise it is necessary to pay attention not only to average indicator values in industry, but also to all presented combination of financial indicators and ratios of a company.

Table 1. Revenue, credit protection ratio and solvency index Globas-i® of the largest Russian manufacturers of mineral water (TOP-10)
NameRegionRevenue for 2014, in ths RUBRevenue, dynamics 2014 - 2013, %%Credit protection ratioSolvency index GLOBAS -i®
1 PK LIDER LLC
INN 5027073220
Moscow region 1 662 090 136 10,73 170 the highest
2 EDELVEIS L LLC
INN 4807003494
Lipetsk region 965 784 145 3,03 224 high
3 AKVALAIN CJSC NJSC
INN 0901039797
Karachay-Cherkess Republic 590 798 134 2,74 239 high
4 FONTE AKVA LLC
INN 5007039750
Moscow region 1 098 284 86 1,84 287 high
5 KOMPANIYA CHISTAYA VODA LLC
INN 5408155063
Sverdlovsk region 634 167 81 1,70 213 high
6 NARZAN OJSC PJSC
INN 2628008703
Stavropol Territory 1 877 356 104 1,41 238 high
7 FIRMA MERKURY LLC
INN 0901006512
Karachay-Cherkess Republic 2 073 999 109 1,39 211 high
8 KAVMINVODY JSC NJSC
INN 2630016660
Stavropol Territory 841 976 110   168 the highest
9 ZAVOD MINERALNYKH VOD OKTYABR-A LLC
INN 2618012997
Stavropol Territory 586 137 547   223 high
10 VISMA CJSC NJSC
INN 0901015958
Karachay-Cherkess Republic 996 857 83 0,48 288 high

The value of the credit protection ratio of the largest Russian manufacturers of mineral water (TOP-10) ranges from 10,3 (PK LIDER LLC) to 0,48 (VISMA CJSC NJSC). There are no indicator values by AVMINVODY JSC NJSC and ZAVOD MINERALNYKH VOD OKTYABR-A LLC.

Picture 1. Revenue and credit protection ratio of the largest Russian manufacturers of mineral water (TOP-10)

revenue and credit protection ratio

The annual revenue of the companies from the Top-10 list amounted to 11,3 bln RUB at year-end 2014, that is by 11% higher than the total figure of the same producers for 2013. Three enterprises from Top-10 reduced the amount of revenue in 2014 in regard to 2013. At the same time, ZAVOD MINERALNYKH VOD OKTYABR-A LLC demonstrated a quite impressive dynamics of the revenue with its increasing by more than 5 times in 2014 in regard to 2013.

The industry average value of the credit protection ratio in 2013 was 2,08, and in 2014 had already a negative value – 0,73. Thus, in 2014 all TOP-10 enterprises had the value of this indicator above the industry average. Only VISMA NJSC CJSC had the ratio value less than 1 in 2014.

All participants of the TOP-10 list got high and the highest solvency index GLOBAS-i®. It testifies that all enterprises can pay off their debts in time and fully, while risk of default is minimal.