Major affiliates of STX Group, a South Korean shipping conglomerate, suffered a liquidity crunch last year, data showed Thursday, raising concerns over the firms’ deteriorating financial status.
According to the data compiled by the Financial Supervisory Service, four out of the business group’s five listed firms saw their current ratio, the key barometer of liquidity, fall below 100 percent in 2012.
The current ratio refers to a firm’s ability to repay debts maturing in one year, with higher numbers indicating healthier financial status. A figure below 100 percent is considered an alarming level.
STX Corp., the group’s holding company, held the lowest liquidity ratio of 62.7 percent, trailed by STX Pan Ocean Co., the country’s top bulk carrier, with 63.6 percent. STX Offshore & Shipbuilding Co. and STX Heavy Industries Co. posted 76.4 percent and 95.1 percent, respectively.
STX Engine Co. posted the highest current ratio of 125.4 percent among listed affiliates last year. However, the industry still considers numbers only above 150 percent to be at an adequate level. (Yonhap News)
