The Financial Highs & Lows of Automobile Firms in Korea
Korea’s 1,079 automobile companies saw their average operating profit-to-sales ratio stand relatively low at 5 percent. In other words, they gained a profit of 5 won by selling 100 won worth of goods. In addition, one out of the nation’s five auto-related firms has higher than 400-percent debt-to-equity ratio.
The Korea 20,000 Corporate Research Institute announced on August 17 that it conducted a survey of the 2015 business situation of 1,079 auto firms. The combined sales of the automotive firms stood at 234.8 trillion won, an amount equivalent to 86 percent of those of Samsung Group’s 59 affiliates.
The number of automobile firms which joined the 1-trillion-won annual sales club last year, totaled 19, with their combined sales estimated at 146.4 trillion won. The sales of these firms accounted for 62.4 percent of the total.
The number of automobile firms with annual sales ranging from 500 billion won to 1 trillion won was estimated at 29, accounting for 7.9 percent of the total. – TheKoreaEconomicDaily