By way of September this yr, SK hynix earned greater than 28 trillion gained (roughly $19.24 billion) in working revenue, making it a net-cash-rich firm. Though the corporate had lengthy carried extra borrowings than money and money equivalents attributable to huge semiconductor investments, its explosive earnings progress has boosted its money to ranges which have prompted some observers to name it “SK hynix Financial institution.”
In response to SK hynix’s third-quarter report launched on Nov. 16, the corporate’s borrowings totaled 24.08 trillion gained as of the tip of September, up 2.23 trillion gained from 21.84 trillion gained throughout the identical interval final yr. That is additionally greater than 2 trillion gained larger than on the finish of June, when borrowings stood at 21.84 trillion gained, a pattern attributed to continued third-quarter capital expenditures and refinancing actions.
Nevertheless, SK hynix’s money and cash-equivalent belongings grew way more quickly, shifting its monetary construction from web debt–the place it had been for the reason that second quarter of 2019–to a web money place for the primary time in about six years. On the finish of the third quarter, the corporate’s money and money equivalents stood at 27.85 trillion gained, about 17 trillion gained larger than a yr earlier, after they had been 10.86 trillion gained. Specifically, SK hynix’s money and money equivalents, which had been 16.96 trillion gained within the earlier quarter, surged as the corporate generated greater than 11 trillion gained in working revenue within the third quarter. In consequence, SK hynix ended the quarter with 3.77 trillion gained extra in cash-equivalent belongings than borrowings, shifting right into a web money place.
As SK hynix has gathered most of its third-quarter working revenue in cash-equivalent belongings, some anticipate its money and money equivalents to climb effectively previous 10 trillion gained by the tip of the yr. By way of the third quarter, the corporate posted gross sales of 64.32 trillion gained and working revenue of 28.04 trillion gained. The funding banking trade already forecasts that SK hynix’s fourth-quarter working revenue will are available in at round 14 trillion gained.
