Importance Profitability ratios are the most popular indicators of the analysis of financial and economic activities, as they characterize organization's performance, efficiency of asset, capital, source of funding, etc. utilization. Therefore, when making management decisions, all those performing the financial analysis should know the current level of profitability of various Russian companies. Objectives The aim is to analyze Russian companies' profitability under the existing Russian and international approaches. The analysis enables to determine the current level, trends and specifics of profitability of public and nonpublic joint stock companies. Methods The study rests on annual financial statements of 250 public and 750 nonpublic joint stock companies. To process and analyze the created database, we use MS EXCEL tools. Results We calculated and analyzed ten profitability ratios of 1,000 Russian joint stock companies over 2010–2013. The results are presented as a percentage of the distribution of public and nonpublic companies having different profitability ratios that characterize profitability of sales, return on assets and return on equity. Conclusions The findings show that in 2011, almost all profitability ratios of Russian public companies were higher as compared with nonpublic companies. However, in 2013, the latter had a higher level of efficiency for most indicators. This is because the average value of net profit of public companies was reducing over the period under review, while nonpublic joint stock companies experienced a significant growth of this indicator.
Keywords: profitability, analysis, financial condition, joint stock company
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