In taking a look at LG's financial performance, I wanted to see how well-positioned they are based on a couple of the financial health indicators discussed in Chapter 2.

According to Bloomberg's analysis (http://investing.businessweek.com/research/stocks/financials/ratios.asp?ticker=066570:KS), the numbers don't look very good. A couple of key indicators:

Return on Assests (ROA): 1.97%
Return on Equity (ROE): -1.50%

It also appears that they are near the bottom in all relevant industry comparisons.

The Yahoo! stats bear out a similar story: http://finance.yahoo.com/q/ks?s=066570.KS+Key+Statistics

Some of the standard analysis is not available because LG is not traded in any US markets.

Finally, according to Morningstar, their Current Ratio is 1.14 and their Quick Ratio (that is assets net of inventory over liabilities) is 0.69.

So overall, it seems LG is not in great health, but also not in any immediate danger of financial failure. 

Related News Item:

LG reports improved earnings: http://www.lgnewsroom.com/newsroom/contents/64148