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According to table 1 there is a conclusion that net cash flows provided by oper-
ating activities reduced by 13% during the considered period. However, in 2014 we
could see a growth by 11%. The year 2015 turned out to be one the worst over the
previous 3 years for the retailer being the cause of almost 22% decline in net cash
flows. This fact has quite easy and logic explanation. The middle of 2014 became a
horrible time for Russian citizens and ended up causing tremendous devaluation of
the national currency that seriously influenced the real income of the people. Conse-
quently, it has deeply influenced the major financial indicators not only of «Magnit»,
but also other retailers. The fall of the total domestic demand and the high inflation
have caused a negative impact on «Magnit’s» business activity. But, despite this is-
sue, the company is still capable of surviving and well operating under these unfortu-
nate circumstances because it possesses the largest sales network in the country and a
pretty good profit margin.
PJSC «Magnit» cash flows provided by investing activities are presented in ta-
ble 2.
Table 2
Cash flows from investing activities of PJSC «Magnit»:
Indicators
Input cash flows, thousand $
Increase rate, %
2013
2014
2015
2014/2013 2015/2014
2015/2013
Proceeds from disposal of subsidiary
7 143
2 855
0
-60,03
-100,00
-100,00
Loans repaid
195 959
528 463
58 293
169,68
-88,97
-70,25
Proceeds from sale of property, plant
and equipment
20 319
14 480
2 712
-28,74
-81,27
-86,65
Indicators
Output cash flows, thousand $
Increase rate, %
2013
2014
2015
2014/2013 2015/2014
2015/2013
Purchase of property, plant
and equipment
1 571 564
1 450 010
885 859
-7,73
-38,91
-43,63
Purchase of intangible assets
13 872
12 000
15 532
-13,49
29,43
11,97
Purchase of land lease rights
22 574
5 826
4 521
-74,19
-22,40
-79,97
Purchase of subsidiary
52 582
0
0
Loans provided
201 536
511 662
55 196
153,88
-89,21
-72,61
Net cash used in investing
activities
-1 638 707
-1 433 700
-900 103
-2,51
37,22
45,07
Net cash flows provided by investing activities increased during the 2013-
2015 year period by 45%. However, that was not accomplished by any additional
gains, but reducing costs. One of the most important investing indicators – purchas-
ing of property, plant and equipment, decreased by 44%. One of the major activities
of «Magnit» is renting their own non-residential premises. Renters, being highly
troubled by decline of the living standard of the people, and, consequently, decline of
the payable demand, are forced to ask for serious reduction of rental rates or to close