Qualitative market research ensures by these indicators
YC.Market is an exclusive tool for finding new partners, and customers, opening new markets and wider business representation. In this article, we will discuss the economic indicators it uses to assess economic activity.
YC.Market finds companies among all registered ones and analyses their activities by financial indicators, region, and type of activity. For example, your company is looking for new business partners in food manufacturing. To compile a ready list of such companies, it is enough to adjust the filters by ticking the required criteria for assessing counterparties. The tool will generate a report with companies with active links to a detailed profile of each. What is going on "under the hood" of YouControl at this moment?
Company size indicator
There are two types of companies:
• large and medium-sized enterprises;
• small and micro-enterprise.
The calculation is made only by financial indicators (excluding the number of employees).
This is the sales volume, the net income received from the sale of manufactured or previously purchased products, provided services, and performed works.
This indicator does not confirm the total effectiveness of the activity of a company by itself. Revenue occurs in unprofitable enterprises as well. But it characterises the share of a company in the market.
All economic resources of an enterprise show the size of a company – own and leased values used to generate income. Material resources include machinery, equipment, buildings, constructions, and raw materials; immaterial resources include licences, patents, copyrights, engineering developments, and trademarks.
Current assets are intended for sale or consumption during an operating cycle. Simply put, the more there are, the better it is.
Net income indicator
Shareholders care about the business's performance, as this impact dividends. The net profit is the company's revenue after paying its expenses, including labour, materials, and other operating costs. It is also referred to as operating profit or net earnings. The net profit is an indicator of how well a company is operating. It may be used to reinvest in the company or repay a bank loan.
Net debt indicator
Net debt is an indicator of liquidity. It is used to determine whether a company can pay off all its debts immediately in case of something occurs. Net debt can demonstrate how large a company's debts are compared to liquid assets. Also, it shows how much cash would be left if all debts were paid off and whether a company has sufficient liquidity to fulfil its debt obligations.
Long-term liabilities targeted financing and provision
This is the amount of debts to banks for loans, long-term debts on liabilities concerning the attraction of borrowed money (except for bank loans), on which interest is accrued, and other long-term liabilities.
This is a balance sheet item that will generate expenses in the future.
Short-term bank loans indicator
This is the number of current debts to banks on loans with an initial maturity of twelve months from the balance sheet date.
Money and its equivalents indicator
Cash in the vault of an enterprise, current and other bank accounts that can be freely spent on current transactions. Money in transit, electronic money or money equivalents, deposits and securities with a maturity of up to 3 months.
EBITDA and EBIT
EBIT, for small companies – earnings before interest and taxes.
EBITDA, for large companies – earnings before interest, taxes, depreciation and amortisation.
This parameter allows you to calculate whether a firm can repay debts from its operating income. It assesses the return on investment and the possibility of self-financing. The higher this indicator is, the better it is.
EBITDA allows to compare companies regardless of their type and accounting policy. The comparison is not affected by the amount of investment, the loan burden and the tax regime.
Net debt-to-EBITDA ratio indicator
The debt ratio shows how many years a company will take to repay its debt. Provided that net debt and EBITDA are constant.
What is next?
YC.Market economic indicators are an excellent means of researching the performance of companies and the economy. It is possible to find companies that are doing well and those which are not.
It makes it possible to search for companies by any criteria you like and find out where they are located if they are in a specific industry, and what their activity is.
Start analysing markets with us.
- Get data and research the industry size and market share of companies.
- Track changes and trends in the market or a specific niche and predict business success.
- Segment and download data according to the required parameters.
- Expand your Purchase and sales department contact base.
- Find new customers, partners, suppliers and contractors.
- Due to the Monitoring function, be the first to know about establishing new companies and individual entrepreneurs.