A better life with Digital is LG Electronics Digital Appliance Company's (DAC) mission. LGE DAC has been making ceaseless efforts to create a new culture in our daily life to present convenience to all its customers all over the world. In the midst of the revolutionary era never experience before, LG has taken the initiative to be at the forefront. For instance, LGE DAC introduced the world first internet home network products among many other market innovative products in the global appliance market last year. A futuristic life you have only dreamed about is now available to you.This and many more is attributed to LGE DAC's product leadership and innovative activities, LGE DAC is achieving rapid growth to become the leading global home appliance company. LG DAC is recognized in the market along the world for its innovative home appliances.
LGE DAC's success is based on their Fast Innovative activity, which in tern is based on LGE DAC's management philosophy of Great Company, Great people (GCGP). It believes that a great company produce great people and great people makes a great company and this synergistic relationship is the foundation of their success. At LGE, there have been innovators of technology and products that can break into new marketplace for the four decades since the LGE foundation day in 1958. At present, 5300 employee of 72 domestic and overseas establishments lead the way in the global electronics industry.
LG Electronics India Ltd (LG EIL) is a wholly owned subsidiary of LG Electronics, South Korea. The company started its operation in Delhi, in May 1997 and within a short span of thirty months, LGEIL had achieved a turnover of approximately 1,900 crores. LGEIL has introduced its wide range of products to the Indian Consumers and has successfully carved a niche for itself. LGEIL success story is a result of its investment in cutting-edge technology and its relentless efforts to bring home the smiling face.
[...] There was a continuous improvement in this ratio for LG Electronics , but during the year 2002-03 due to fall in PAT and investment in Capital Employed increased, the Ratio fell to 14.4 from 19.2 The ratio improved as investment in Capital Employed decreased from 613.53 to 521.09 mainly because the company was able to decrease the amount of loan funds by around 50%. The increase in the Ratio is a good sign for the Company. OPERATIN MARGIN=PBDIT/SALES PBDIT-OTHER INCOME The Operating Profit refers to the pure operating profits of the firm i.e. [...]
[...] Working capital ratio of LG Electronics is increasing which is a positive sign for the company. The sales of the company have increased with less investment in working capital. LEVERAGE RATIO DEBT- EQUITY RATIO=TOTAL DEBT/TOTAL OWNER'S EQUITY TOTAL DEBT=LOAN+LIABILITIES OWNER'S EQUITY=SHAREHLDERS FUND-MISC. EXPENDITURE The DE ratio is the basic and the most common measure of studying the indebtedness of the firm, it indicates the percentage of funds being financed through borrowings. The Debt-Equity ratio is determined to ascertain the soundness of the long-term financial policies of the company. [...]
[...] It is a good sign for LG Electronics . DIVIDEND PER SHARE (DPS) = TOTAL PROFITS DISTRIBUTED NUMBER OF SHARES Sometimes the equity shareholders may not be interested in the EPS but in the return, which they are actually receiving from the firm in form of dividends. The amount of profits distributed to share holders per share is known as DPS. YEAR DIVIDEND DECLARED NO. OF SHARES DPS Dividend per share in 1999-2000 was Rs.5, which was increased to Rs.10 in the year 2000-01 and remained same for the next year In the year 2002-03 the DPS fell to Rs.5 as PAT reduced during this period In 2003-04 the DPS was again at Rs.14 due to increase in PAT. [...]
[...] The position is not a good sign for LG Electronics , as numbers of days it is holding inventories are increasing. This is resulting in increasing cost for the company. It can even lead to deteriorate of quality or inventory becoming obsolete. It seems that there is a lack of coordination between Production dept. and the Sales Dept. that is leading to overstocking of goods which is to be seriously dealt, as it could be a result of increasing cost and decreasing Profits. [...]
[...] The day to day problems of financial management consists of highly important task of finding sufficient cash to meet current obligations. To the extent that a firm has to make payments to its suppliers before it is paid to for the goods and services it provides, a cash short fall has to be met, usually through the short-term borrowings. The liquidity ratios are devised to keep a track on the extent of the firm's exposure to the risk that it will meet its short-term obligation These ratios as a group are intended to provide information about a firm's liquidity and the primary concern is the firm's ability to pay its current liabilities. [...]
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