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

 

Last week, I was at the consumer electronics show and I saw a great number of new, innovative products from LG. These include 4K TV's, TV's and phones with curved screens, appliances that you can communicate with over the web with a smartphone, interactive display boards and a whole host of wearable technology.

I am also working with LG to develop innovative guest experiences at our hotels (Hilton) using some of their products.

So I thought it would be a good fit for me to follow LG as part of the MGMT7160 course I am taking at University of Memphis, in pursuit of my MBA.