Significant Improvement in Dongkuk Steel's Financial Soundness... Debt Ratio Down by 26%p
[Asia Economy Reporter Hwang Yoon-joo] Dongkuk Steel has significantly improved its financial stability by drastically reducing its debt ratio.
Dongkuk Steel's consolidated debt ratio for 2020 was 153.7%, down 26 percentage points from 2019. Compared to the 207% debt ratio in 2015, this is a decrease of 53 percentage points. The debt was reduced by 1.3677 trillion KRW from approximately 4.65 trillion KRW in 2015 to 3.2823 trillion KRW at the end of 2020.
In 2020, Dongkuk Steel's sales were 5.2062 trillion KRW, an 8.0% decrease from the previous year, but operating profit increased by 79.1% to 94.7 billion KRW. The company turned a net loss of 81.7 billion KRW in 2019 into a net profit of 69.5 billion KRW in 2020. This net profit marks a return to profitability after three years since 2017.
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As a result of continuing profitability-focused management in 2020, Dongkuk Steel improved its operating profitability and significantly reduced its debt ratio. The company plans to continue efforts to strengthen financial soundness and aims to upgrade its current BBB- (stable) credit rating.
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