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Top 10 conglomerates’ activity ratios slide

July 21, 2014 - 20:15 By Korea Herald
South Korea’s top 10 conglomerates are making less use of their assets to fuel business activities, affecting their vitality, which has weakened over the years, a report by a local corporate research firm said Monday.

According to corporate watcher Chaebul.com., the leading business groups sat on 63 trillion won ($61.3 billion) worth of assets last year, stopping the so-called activity ratio at 94.1 percent.

Activity ratios are widely used to measure a company’s capability to generate profit from the assets it controls, and can be a barometer of how well the firm is being managed. A reading below 100 percent means companies are not using their assets to the fullest extent.

The conglomerates analyzed by the research firm are Samsung, Hyundai Motor, SK, LG, Lotte, POSCO, Hyundai Heavy Industries, GS, Hanjin and Hanwha. (Yonhap)