Mobile QR Code QR CODE : Journal of the Korean Society of Civil Engineers
Title Financial Status and Business Performance Outlook of Construction Companies
Authors 김병일(Kim, Byungil)
Page pp.659-666
ISSN 10156348
Keywords 재무제표; 경영 성과; 세계금융위기; 듀퐁 분석 Financial statements; Business performance; Global financial crisis; DuPont analysis
Abstract Characterized by boom-and-bust cycles, low entry barriers, and an almost perfectly competitive structure, the construction industry presents a unique challenge for the survival and growth of its constituent companies. A crucial aspect of this challenge is the ongoing monitoring of their financial health and business performance. To understand the typical financial and operational status of construction companies, this study analyzes the financial statements of 6,252 such companies, all of which have undergone at least one external audit between 2000 and 2019. These statements were used to develop combined financial profiles and derive industry averages. The findings indicate that the construction industry experiences limited growth in sales and profitability. High leverage ratios can jeopardize financial stability, pushing companies to seek production efficiency, such as enhancing gross asset turnover. This tendency has been particularly noticeable in the aftermath of the global financial crisis in 2008.