According to MAI analysts, the total value of the largest state enterprises is €2.8bn, with Eesti Energia continuing to make up a half of that.
Most of the top hundred firms operate in traditional domains and on relatively developed goods/services markets. The much talked-about start-ups are not in the table, as these are mostly registered abroad and do not fit the criteria of the table.
Rapid growth not in sight
Mr Källu says it’s difficult to predict the fortunes of the companied next year. According to him, markets’ behaviour is impacted by the USA beginning to put an end to printing of dollars, so we’ll see how the markets emerge from that.
«What comes to the results of our companies, obviously the next year economic growth forecasts have been pulled back. Probably, no big fast development is nowhere in sight,» he explained.
«The question rather is, if we are to expect some negative external shocks – the geopolitical situation, the relations with Russia, the oil price. Seems to me the negative risks are more abundant than the upward opportunities. But we’ll see by the end of the year which of these will have real impact and which won’t,» added the MAI partner.
How does one measure the size of various companies? What is important – the turnover, the profit, or some other indicator?
Estonia’s oldest company top-list is being compiled by the business daily Äripäev since 1993. The list is based on six indicators: turnover, increase of turnover, operating profit, increase of operating profit, profitability and return on assets. On the basis of points on these rankings, the top 100 list is put together. This is a mechanical aggregate of indicators characterising the company’s size, profitability and growth, which actually does not show much at all.
Toivo Mängel, an author of the Äripäev list idea, recalled in the freshest compilation of the Äripäev lists that they desired to take a bit merrier approach mapping the business landscape – according to today’s understanding, this would mean an approach even sporty and society-like.
For the most part, companies are compared on the basis of two indicators. One is sales revenue or turnover, according to which the world’s best known Fortune 500 is compiled. In the lists put together by Äripäev, the turnover is indeed a component; however, as I said, the newspaper is mostly stressing the aggregate table.
Two years ago, Postimees started to list companies according to turnover only.