Twelve of 50 state-owned companies analyzed by the economist of the Institute for Development and Social Initiative “Viitorul” Ion Butmalai sustained losses in 2015-2016. Seven companies had a volatility of sales of up to 35%. This generates a major risk to financial stability, stated the expert.
The analysis covered state-owned enterprises where assets are valued at over 1 million lei and the state holds more than 51% of shares. Twelve of these are joint stock companies, while 38 are state-run enterprises, IPN reports. The sales revenues of the chosen companies total about 40 billion lei. These manage assets to the value of 74.7 billion lei.
Seven companies had a return on capital higher than 15%, while the rest of about 5% and less. Four companies had a return on sales higher than 15%, while the rest of about 5% and less. Three companies had a return on assets higher than 15%, while the rest of about 5% and lower.
In the case of 17 companies, their debts exceeded the annual profit. For example, SA “Air Moldova” has a coefficient of 37.88 annual profits to cover the debt; IS Frecvente Radio – 27.85, while SA “Franzeluta” – 7.81. According to international practice, an indicator higher than 4 or 5 should be a warning signal as the company’s chances of fulfilling its financial obligations are slim.
