The debt ratio among South Korean listed firms declined this year, reflecting the enhanced financial soundness amid the faster rise in equity than debt, bourse operator data showed Monday.
The debt-to-equity ratio among 585 companies listed on the main KOSPI bourse, which close books in December, stood at 106.58 percent as of end-September, down 1.85 percentage points tallied at the end of last year, according to the Korea Exchange.
The debt ratio is calculated by dividing debts by equities, reflecting the financial healthiness of companies.
Debts owed by the 585 listed firms totaled 1,168 trillion won (1.03 trillion U.S. dollars) as of end-September, up 4.83 percent from the end of last year.
The total equities for the listed companies expanded 6.64 percent to 1,095.9 trillion won (970.7 billion U.S. dollars) in the cited period.
The number of companies having a debt ratio of less than 100 percent was 336, or 57.4 percent of the total. Firms with a debt ratio of more than 200 percent was 92, or 15.7 percent of the total, as of end-September.
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