LG Energy Solution (XKRX:373220) Debt-to-Equity

: 0.54 (As of Dec. 2023)

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LG Energy Solution's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was ₩3,211,456 Mil. LG Energy Solution's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was ₩7,720,833 Mil. LG Energy Solution's Total Stockholders Equity for the quarter that ended in Dec. 2023 was ₩20,200,641 Mil. LG Energy Solution's debt to equity for the quarter that ended in Dec. 2023 was 0.54.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.

The historical rank and industry rank for LG Energy Solution's Debt-to-Equity or its related term are showing as below:

XKRX:373220' s Debt-to-Equity Range Over the Past 10 Years
Min: 0.43 Med: 0.71 Max: 0.9
Current: 0.54

During the past 4 years, the highest Debt-to-Equity Ratio of LG Energy Solution was 0.90. The lowest was 0.43. And the median was 0.71.

XKRX:373220's Debt-to-Equity is ranked worse than
68.65% of 2619 companies
in the Industrial Products industry
Industry Median: 0.28 vs XKRX:373220: 0.54

LG Energy Solution Debt-to-Equity Historical Data

The historical data trend for LG Energy Solution's Debt-to-Equity can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

LG Energy Solution Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

Debt-to-Equity

0.90

0.88

0.43

0.54

LG Energy Solution Quarterly Data
	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Debt-to-Equity	Get a 7-Day Free Trial							0.43	0.42	0.47	0.52	0.54

Competitive Comparison

For the Specialty Industrial Machinery subindustry, LG Energy Solution's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

LG Energy Solution Debt-to-Equity Distribution

For the Industrial Products industry and Industrials sector, LG Energy Solution's Debt-to-Equity distribution charts can be found below:

* The bar in red indicates where LG Energy Solution's Debt-to-Equity falls into.

LG Energy Solution Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

LG Energy Solution's Debt to Equity Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(3211456	+	7720833)	/	20200641
	=	0.54

LG Energy Solution's Debt to Equity Ratio for the quarter that ended in Dec. 2023 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(3211456	+	7720833)	/	20200641
	=	0.54

LG Energy Solution (XKRX:373220) Debt-to-Equity Explanation

In the calculation of Debt to Equity, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by Total Stockholders Equity. In some calculations, Total Liabilities is used to for calculation.

Be Aware

Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.

LG Energy Solution Debt-to-Equity Related Terms

Thank you for viewing the detailed overview of LG Energy Solution's Debt-to-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.

LG Energy Solution (XKRX:373220) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » LG Energy Solution Ltd (XKRX:373220) » Definitions » Debt-to-Equity

Comparable Companies

Traded in Other Exchanges

N/A

Address

Yeongdeungpo-gu, Yeoui-daero, Seoul, KOR

Website

https://www.lgensol.com

LG Energy Solution, or LGES, is the third-largest battery maker for electric vehicles, or EVs, with about 14% global share in the first half of 2023, according to SNE Research. The EV battery segment is the largest revenue contributor, which accounted for close to 60% of total revenue in 2022. Besides EV batteries, LGES also manufactures batteries for mobility, mobile phones, laptops, electrical devices, and energy storage systems. The company was spun off from LG Chem's battery division in December 2020 and listed on the Korea Exchange in January 2022. It has global manufacturing facilities in Korea, China, Poland and the United States. Key customers include General Motors, Tesla, Volkswagen, Hyundai Motors and Stellantis.

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