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Operating and Net Profits of Listed Companies Nosedive
Profitability Plunges
Operating and Net Profits of Listed Companies Nosedive
  • By Yoon Young-sil
  • April 2, 2020, 11:26
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Korea Exchange announced on April 1 that 583 KOSPI-listed companies that recently submitted consolidated financial statements and do not include those with a fiscal yearend of December and financial companies posted 2,006 trillion won, 102 trillion won and 52 trillion won in 2019 sales, operating profit and net profit, respectively. The operating and net profits dropped 37.04 percent and 52.82 percent whereas the sales edged up 0.47 percent.

Their profitability plunged, too. Specifically, the operating profit-to-sales ratio fell 3.03 percentage points to 5.09 percent and the net profit-to-sales ratio fell 2.95 percentage points to 2.61 percent.
 

When Samsung Electronics, which accounts for 11.48 percent of the sales, is excluded from the statistics, the sales edged up 1.3 percent to 1,776 trillion won, the operating profit dropped 28.02 percent to 74 trillion won and the net profit plummeted 54.04 percent to 31 trillion won. In addition, those companies’ consolidated debt ratio rose 7.34 percentage points to 111.86 percent in 2019.

The 583 companies include 416 in the black and 167 in the red. The net profit increased 137.23 percent in the textile and apparel industry, 78.64 percent in the construction sector, and 51.12 percent in transportation equipment industry.

On the other hand, it dropped 64.75 percent, 60.45 percent, 55.85 percent, and 55.54 percent in electric and electronics, chemical, paper and wood, and precision medicine. The transportation and warehousing sector and the electricity and gas industry remained in the red last year.