Big firms see profitability, financial health worsen

SEOUL, March 22 (Yonhap) -- South Korea's major companies saw their profitability
and financial soundness worsen in 2008 from a year earlier because of the global
financial crisis, market data showed Sunday.
According to the data, the operating profit margin of the country's top 100
listed companies by market value averaged 7.23 percent last year, compared with
7.92 percent a year earlier.
The margin measures the ratio of operating profit to revenue. Last year's figure
means that the companies recorded an average operating profit of 72.3 won on
sales of 1,000 won (US$0.71).
In particular, Samsung Electronics Co. with the highest market value recorded an
operating profit margin of 5.67 percent, sharply down from 9.41 percent.
The global financial turmoil also made a dent in the companies' financial health.
The average debt-equity ratio of the listed companies stood at 99.96 percent last
year, compared with 82.31 percent a year earlier. The ratio gauges a company's
financial leverage calculated by dividing its total liabilities by stockholders'
equity.
Shipbuilder Samsung Heavy Industries Co. had the highest ratio of 1,022 percent,
followed by Daewoo Shipbuilding & Marine Engineering Co. with 671 percent, Asiana
Airlines with 662 percent, Korean Air with 462 percent and Hyundai Heavy
Industries Co. with 351 percent, the data showed.
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