Ranking Methodology
The BdiCode ranking is based on an innovative and unique methodology, developed by CofaceBdi, to rank the economy’s leading companies. The methodology used uses varied and broad definitions of the concept of “business leadership.”
We at CofaceBdi have been analyzing the Israeli economy and companies for years and have been searching for the “business/genetic code” to rank the leading companies. Is business leadership defined by the size and scope of operations? By stability and profitability? By growth rates or charismatic managers? By breakthroughs into new fields and markets? Or, perhaps by outperforming competitors, a proper work environment, or by contributions to the community and social inter action? Indeed, the code for business leadership is multidimensional, comprised of several parameters, both qualitative and quantitative. The BdiCode for Business Excellence and Leadership reflects a broad view of the companies in Israel and examines conditions that create a successful and leading company.
Ranking Criteria
The scope of operations, including added value indices, reflects the contribution of the company to its turnover.
• Profitability index – Being big is not enough. The question is; what is the return that the company generates for its actual volume of activity and what is its profitability?
• Growth rates over time, innovative new products, modern technologies, new activities, and new markets.
• Risk ranking and payment morality; the lower the risk of the company and the greater the tendency to pay on time, the higher the rank.
• The scope of contribution to the community and activities that attest to social involvement on behalf of the company and/or its employees.
And alongside the quantitative indices are also qualitative indices:
• How well is the company managed? How well are the company and its managers regarded by other managers?
• What work environment is created by the company and how much do people want to work there?
The key to the company’s leadership and success is derived from a combination of quantitative and qualitative measures.
Ranking Tables
The “CODE” Ranking: The central ranking of leading companies that includes all fields of industry, commerce, services, construction, etc., with the companies ranked according to all above-listed criteria. The higher a company is ranked in the “CODE,” the higher it will be ranked in its sector and industry (with the exception of specific rankings, explained in detail).
Holding Companies: Ranked by equity and by assets.
Commercial Banks: Ranked using all “CODE” parameters. Revenue was defined as total net income from interest and non- interest income. More so, the banks were ranked according to total assets, managed credits, and return on equity.
Credit Cards and Financial Leasing: Ranked using all “CODE” parameters.
Insurance Companies: Ranked using all “CODE” parameters. Revenue was defined as income from gross insurance premiums.
Industrial, Commercial, and Service Sectors: Companies appear according to their ranking in the “CODE.”
Notes on Special Sectors: Motor Vehicle businesses – revenue less import and purchase taxes were used; Fuel and Gas – revenue from gas -related business less excise tax was used; Operational Leasing and Short-Term Rentals – revenue from the sale of vehicles was included.
“Best Companies to Work for” Ranking: a weighting of the most important parameters for the Israeli employee in choosing the place of work (a representative sample of more than 2,000 surveyed parties), in grades given by the respondents vis-à-vis their places of work (A survey of cross-country employees and internal surveys of tens of thousands of employees who were asked about their place of work and preferred workplace). This information was also weighted by a survey of positions among human resources managers and information on employers’ level of investments in human capital and data from internal surveys conducted in cooperation with the companies (details are available in the article facing the ranking results).
Construction and Development and Income Generating Properties: Ranked using all “CODE” parameters. Income generating company revenue does not include changes in the fair value of properties, income from interest and other forms of income.
Residential Construction Development: Ranked by revenue from residential construction development.
Senior Citizens Sheltered Housing: The ranking methodology is based on the number of housing units and an analysis of the services provided.
Ranking of “Law Firms”: The ranking is based on the quality of the business activity in which the firms are involved in representing leading entities in the Israeli economy. The ranking is carried out in such a manner that the offices transmit information to CofaceBdi detailing the transactions and projects in which they were involved, with the names of their clients, the volume of activity, significant judgments, and legal precedents. The ranking team holds in – depth interviews with the firms to obtain more information about their activities, to examine the quality of the firm ‘s clients: The higher the rating of clients, the higher the BdiCode ranking, The information received from the firms, which includes active files for the ranking year, is cross-checked with the information received from the firm’s clients, including feedback on quality, professionalism, and nature of the services provided.
In addition, as in previous years, a request is made to other law firms for their opinion on the firms’ active in the various areas.
Ranking of “Accounting Firms”: The ranking of accounting firms by CofaceBdi is based on the quality of the business activity in which the firms are involved in the representation and audit of leading entities in the Israeli economy. The ranking is made in such a manner that the firms provide CofaceBdi with much information, detailing the clients and services provided by the accounting firm. CofaceBdi’s ranking team holds in-depth interviews with the firms to obtain full information about their activities, cross-checks and checks the information with information from the companies themselves. The rankings reflect the activity of the firms, the results of a comprehensive survey and recommendations among the auditors, and the ranking of the firm’s clients as ranked in the ranking of the leading companies. As customers rank higher in the BdiCode rankings, the firm ranks higher. The categories also include, for the first time, the audit field as well as other fields. Over the last decade, the accounting firms have changed the nature of their activities. In the traditional field of auditing, there has been an expansion into new fields, such as risk management. In the field of management and organizational consulting activities, a field which has developed among the firms and has become a very involved field at many firms. In organizational consulting and management, the firms compete with leading consulting firms in Israel and the world. This year, we also ranked the firms in the fields of internal auditing, taxation, investigative auditing and, of course, the audits of public companies traded on the TASE.
Ranking of “Patent Attorneys Firms”: Weighing of the “CODE” ranking of the firms’ clients, the number of authorized patent attorneys and the number of patents filed and accepted by the firm. The higher the ranking of the client, the higher the ranking of the associated patent attorney firm (unranked clients, such as international clients and foreign companies, were also considered).
Ranking of “Municipalities/Councils”: The “CODE” ranking is based on weighing financial and efficiency indices of municipalities and councils. The Efficiency Index is based on several indices that reflect their municipal functions.
Capital Markets: “Investment Houses” were ranked according to 3 rankings; 2 rankings were based on the total value of managed assets, but one included provident funds while the second excluded provident funds. A third ranking was made according to the value of mutual funds.
Urban Renewal: For the first time, two ratings are presented; One is the ranking of the leading companies in TAMA 38/1 and TAMA 38/2 projects. This rating includes companies that have projects in the process of being implemented. The second ranking includes companies active in the field of removal – construction – this rating includes companies that as of 2016 have projects in progress, or completed projects and projects in advanced stages only, such as after approval of a committee or request for a permit. In each ranking, the companies are stated in alphabetical order without any internal rating
Revenue and turnover figures reported in the book are based on company – available data; when the data was unavailable, the figures were estimated by CofaceBdi in NIS and noted as such. Shekel figures were converted into U.S. Dollars according to an average exchange rate for 2016 of NIS 3.8406=$1. Balance sheet data was converted according to NIS 3.845=$1. Notes specific to particular entries appear at the bottom of each page.
Notes indicating their public listing, company/group figures and estimates appear at the bottom of each page as a symbol.