The cumulative free money movement (FCF) of the 237 non-financial listed firms amongst Korea’s prime 500 firms for the third quarter of this yr elevated by greater than 20 trillion received in comparison with the identical interval final yr. This enchancment is attributed to the numerous enhancement in money technology capability of main firms comparable to Samsung Electronics and SK Hynix, because the semiconductor business skilled an excellent increase.
In response to CEO Rating, a company information analysis institute, on Dec. 10, the cumulative free money movement for the third quarter of 237 listed firms among the many prime 500 firms, excluding monetary corporations, reached 69.650 trillion received, a rise of 20.596 trillion received (42.0%) from the identical interval final yr (49.054 trillion received).
Free money movement, calculated by subtracting capital expenditures from working money movement, serves as an indicator of an organization’s precise monetary state of affairs and dividend capability.
Working money movement for the third quarter of this yr elevated by 24.5% to 164.483 trillion received, whereas capital expenditures additionally expanded by 14.2% to 94.833 trillion received. Corporations with elevated free money movement numbered 127, outnumbering these with decreased movement (110 firms).
Samsung Electronics recorded the best free money movement as of the third quarter of this yr, reaching 19.038 trillion received, a 42.6% improve. SK Hynix adopted with working money movement practically doubling, leading to free money movement of 14.039 trillion received, a 138.6% improve. Different prime performers included Kia (4.266 trillion received), Korea Gasoline Corp. (3.963 trillion received), HD Hyundai Heavy Industries (3.455 trillion received), Korea Electrical Energy Corp. (2.873 trillion received), and Hyundai Mobis (2.369 trillion received).
Conversely, 4 firms recorded detrimental free money movement exceeding 1 trillion received: Hyundai Engineering & Building (-1.473 trillion received), LG Power Resolution (-1.451 trillion received), Doosan Enerbility (-1.036 trillion received), and LG Show (-1.210 trillion received).
In comparison with final yr, SK Hynix confirmed the biggest improve in free money movement (+8.154 trillion received), adopted by Samsung Electronics (+5.692 trillion received) and Hanwha Ocean (+2.923 trillion received). Hyundai Motor Co. recorded the biggest lower in free money movement, falling 72.0% to 1.365 trillion received because of the influence of delayed tariff negotiations. Hyundai Engineering & Building, SK Telecom, and Kia additionally recorded decreases exceeding 1 trillion received.
By sector, the IT electrical and electronics business led the expansion with a complete of 29.752 trillion received, a 96.1% improve. In distinction, the automotive and components sector confirmed the biggest decline with a lower of three.942 trillion received.
CEO Rating analyzed, “Pushed by favorable semiconductor business circumstances, Samsung Electronics and SK Hynix led the rise in free money movement,” including, “The elevated free money movement confirmed a sample of resulting in company funding activation.”
