Journal of the Architectural Institute of Korea Structure & Construction (대한건축학회논문집:구조계)

Architectural Institute of Korea (대한건축학회)
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Identifying the Key Financial Ratios to Evaluate Korean Construction Firms' Soundness

국내 건설기업의 경영 건전성 평가를 위한 핵심 재무비율 도출

  • 임혜경 (한국기술교육 대학원) ;
  • 최재현 (한국기술교육 건축공학과)
  • Received : 2015.04.23
  • Accepted : 2015.07.13
  • Published : 2015.07.30
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Abstract

Recently domestic recession of construction industry brought negative effects on many Korean construction firms. The firms started recognizing financial soundness as the highest priority. Management decisions were made based upon analysis results in terms of profitability and risk instead of simple number of contracts or sales amount. The firms should be able to identify financial risk factors and come up with strategies in a timely manner through analyzing key performance indicators. This study analyzed key financial ratios that affected the financial soundness of the construction firms by comparing the workout group and healthy group. As a result, the stability, activity, and productivity were derived as the most significant indicators, and equity ratio, total asset turnover ratio, and labor equipment ratio has been drawn into the most meaningful financial ratios. It is essential for the Korean construction firms to maintain healthy financial condition and increase productivity by enhancing management capabilities of the enterprises.

Keywords

Acknowledgement

Supported by : 국토교통부

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