139 Clustering of Small and Medium-Sized Businesses
0.256
0.192 0.182
0.35
-0.35
0.66
0.274
- 0.369 - 0.196 0.148
-0.226
0.217
0.059 0.098
-0.600 -0.400 -0.200 0.000 0.200 0.400 0.600 0.800
2,010 2,011 2,012 2,013 2,014 2,015 2,016 2,017 2018 2019 2020 2021
Cumulative indicators of profitability of operating profit of small enterprises in the Lipetsk region, machine-building industry,
shares
Figure 4. Dynamics of indicators of profitability of operating profit of small enterprises in the engineering industry operating in the Lipetsk region for the period 2010– 2021, shares of units
Source: Compiled by the author based on data posted on the official website https:// www.list- org.com
According to Figure 4, the operating profit margin of small enterprises in the Lipetsk region operating in the engineering industry did not exceed 18.2 % in 2021.
Tsertseil Juliya Sergeevna 140
0.24
0.28 0.29 0.33
0.25 0.25 0.16
0.11 0.05
0.00 0.13
0.17 0.17 0.17 0.23
0.14 0.14 0.27
0.11 0.14
-0.10 0.00 0.10 0.20 0.30 0.40 0.50
2,010 2,011 2,012 2,013 2,014 2,015 2,016 2,017 2018 2019 2020 2021
NLMK profit margins, shares
Figure 5. Dynamics of profitability indicators of PJSC Novolipetsk Iron and Steel Works for the period 2010– 2021
Source: Compiled by the author based on data posted on the official website https:// www.list- org.com
According to Figure 5, the maximum value of the company’s profitability indicator is 27 % for the period 2010– 2021.
When forming key profitability indicators, the starting point is the “sales proceeds” indicator, the absolute value of which directly depends on the range of products sold, which is reflected in Table, in relation to PJSC Novolipetsk Iron and Steel Works.
Table 4. NLMK’s product range
Application industry Name of product Oil and gas infrastructure Hot- rolled steel
Cars Hot- rolled steel, cold- rolled steel, wire Trucks Hot rolled, cold rolled, Quard, Quend
Railway transport Hot- rolled steel, cold- rolled steel, galvanized steel, Quard, Quend
Construction and mining
machinery Hot- rolled steel, cold- rolled steel, Quend
Agricultural machinery Hot- rolled steel, cold- rolled steel, galvanized steel, Quard, Quend
Shipbuilding Hot- rolled steel
141 Table 4. Continued
Clustering of Small and Medium-Sized Businesses
Application industry Name of product Construction, renovation
and decoration Hot- rolled steel, cold- rolled steel, galvanized steel, pre- painted steel, fittings, shaped steel, hardware products, blast- furnace slag, steel- smelting slag, granulated slag Household appliances Hot- rolled steel, cold- rolled steel, galvanized steel, color-
coated steel, dynamic steel
Energy equipment Transformer rolling steel, dynamic rolling steel Special equipment Hot- rolled steel
Steel production Pig iron, coke, iron ore, slabs
Source: Compiled by the author based on data from an official source: NLMK’s official website https:// nlmk.com
As we can see, the degree of conversion of raw materials by a key participant is limited to rolled products.
9 245.0
10,554
12,046
10,065
7 636.4 8 008.3
10,396
0.0 2 000.0 4 000.0 6 000.0 8 000.0 10 000.0 12 000.0 14 000.0
31-12-2020 31-12-2019 31-12-2018 31-12-2017 31-12-2016 31-12-2015 31-12-2014
Revenue from Business Activities NLMK - Total, mln.doll.
Figure 6. Dynamics of the indicator “revenue from sales” of PJSC “Novolipetsk Iron and Steel Works” for the period 2014– 2020
Source: Compiled on the basis of data provided by the information and analytical terminal Refinitive
The dynamics of changes in the indicator of economic value added of the anchor enterprise of the territorial cluster PJSC Novolipetsk Iron and Steel Works is shown in Figure 7.
Tsertseil Juliya Sergeevna 142
959.0 1 309.0 1 955.0
1 282.0
546.7 0.0
1 000.0 2 000.0 3 000.0
2016 2017 2018 2019 2020
EVA NLMK
Figure 7. Dynamics of changes in the indicator of economic value added of PJSC Novolipetsk Iron and Steel Works for the period 2016– 2020, million US dollars Source: Compiled on the basis of data provided by the information and analytical terminal Refinitive
According to Figures 6 and 7, it can be said that in the presence of a fairly developed metallurgical and machine- building cluster of the Lipetsk region, the indicators of the anchor enterprise PJSC Novolipetsk Iron and Steel Works do not have a stable progressive dynamics in relation to the formation of an indicator of economic value added (EVA). At the same time, the indicator of the average cost of capital of PJSC NLMK is quite low among the companies of this group: Basic materials, which is shown in Figure 8. It is 4.9 %.
2.5% 4.9% 6.2% 6.9% 7.1% 7.9% 9.2%
10.7% 12.5%13.5% 14.5%14.7%16.4%
19.6%
- 5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
AKRN.MM POLYP.L ELTZ.MM PLZL.MM URKA.MM RUSP.MM NLMK.MM KZMS.MM A7L.L ENPG.MM CHMK.MM HIMC.MM PHOR.MM VLHZ.MM KZOS.MM IGST.MM SELG.MM CHMF.MM MGNZ.MM
KAZT.MM KOGK.MM BRZL.MM CHEP.M
M GMKN.MM
MTLR.MM VSMO.MM URKZ.M
M LNZL.MM ALNU.MM ROLO.MM RUAL.MM MAGN.MM ALRS.MM
AMEZ.MM CHZNI.RT
S UNKL.MM SELLI.RTS
WACC Basic materials, 2021
Figure 8. Indicators of the average cost of capital of Russian public companies in the Basic materials industry, 2021
Source: Compiled on the basis of data provided by the information and analytical terminal Refinitive
In this case, we can say that profit indicators should be formed at a higher level.
This can be facilitated by expanding the circle of potential consumers formed by
143 Clustering of Small and Medium-Sized Businesses
small and medium- sized businesses in the manufacturing sector of the Lipetsk region. At present, the introduction of coordinating measures of state support and development of small and medium- sized businesses is required. The purpose of these measures should be targeted impact in the branches of specialization of geographical territories, mainly in the manufacturing sector. This is due to the fact that today the proportion of small and medium- sized enterprises engaged in production activities identified with the specialization of the territorial cluster is extremely low. According to the data of the statistical collection of the Federal State Statistics Service, when evaluating the activities of small enterprises, certain characteristics were identified as important factors limiting the development potential. These factors include lack of own financial resources, high cost of debt financing. These shortcomings can be minimized as a result of the formation of cooperative relationships with large public companies.
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