These calculations show that the profitability of "import profits" has high results. When comparing EBITDA and EBIT with revenue in 2021, positive dynamics are visible, growth exceeded 200%. The growth of OIBDA compared to revenue from operating activities exceeded 150%.
Such high figures are explained by the outpacing growth of revenue, which increased by 81% during the year, over operating losses, which increased by only 53%. This allowed the company to fully recover from the effects of the economic downturn caused by the pandemic, increase sales and achieve excellent financial results. Thus, in 2021, the company received a net profit of 278.8 billion rubles, more than three times exceeding this figure for 2019 (although at that time measures related to the pandemic had not yet been introduced) - 83.4 billion rubles.
In practice, the profitability of advantages of truemoney database sales by EBITDA and OIBDA is reflected in the reports of many enterprises. Let's evaluate the indicators of PJSC NLMK and PJSC Rostelecom.
NLMK PJSC performance indicators
Rostelecom PJSC performance indicators
Values Debt/EBITDA, Debt/EBIT, Debt/OIBDA
Profit is also often compared to the company's net debt.
It can be assessed in different ways. Thus, any liabilities in aggregate can be taken into account. In Russian reporting, they are indicated in sections IV and V of the balance sheet. Often, the short-term element is excluded. The calculation can also be performed based on the net amount of debt. Then the cash mass and its equivalents are excluded from the enterprise's liabilities.
Let's calculate this value in two ways. In the first, we'll take the total debt as a basis, and in the second, only the net debt. The corresponding amounts are used in the average annual amount. This choice is due to their reflection in the balance sheet, which is indicated on a certain date, so it should be used in a form that will allow it to be correlated with the denominator.
Since the debt-based calculation has the same form for each form of profit, we will limit ourselves to the formula for EBITDA:
Debt/EBITDA = [Average Long-Term Liabilities (1400 BB) + Average Current Liabilities (1500 BB)] / EBITDA
Net Debt / EBITDA = [Average Long-Term Liabilities (1400 BB) + Average Current Liabilities (1500 BB) – Average Cash and Equivalents (1250 BB)] / EBITDA
It is desirable that the final value does not exceed 3, and over time it should decrease (this is relevant for the calculation based on the amount of total debt). It can be used to judge how much time the enterprise needs to pay off all existing debt in full, if its size does not increase, and when using financial receipts for these purposes, the amount of which is not less than the profit before interest payments, accrued taxes and depreciation.
The results of the comparison with the total debt amount often appear in financial reports. For example, they can be seen in the documentation published by PAO Gazprom.