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POSCO (PKX) | Long-term Debt and Solvency Analysis

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Solvency ratios also known as long-term debt ratios measure a company's ability to meet long-term obligations.


Ratios (Summary)

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POSCO, debt and solvency ratios

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    Dec 31, 2011 Dec 31, 2010
chart Debt to equity
chart Debt to capital
chart Interest coverage

Source: Based on data from POSCO Annual Reports

Debt to Equity

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    Dec 31, 2011 Dec 31, 2010
  Selected Financial Data (USD $ in millions, translated from KRW ₩)
chart Short-term borrowings and current installments of long-term borrowings
chart Long-term borrowings, excluding current installments
chart Total debt
chart Equity attributable to owners of the controlling company
  Debt to Equity, Comparison to Industry
chart POSCO1
  Industry, Basic Materials

Source: Based on data from POSCO Annual Reports

2011 Calculations

1 Debt to equity = Total debt ÷ Equity attributable to owners of the controlling company
= ÷ =

Debt to Capital

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    Dec 31, 2011 Dec 31, 2010
  Selected Financial Data (USD $ in millions, translated from KRW ₩)
chart Short-term borrowings and current installments of long-term borrowings
chart Long-term borrowings, excluding current installments
chart Total debt
chart Equity attributable to owners of the controlling company
chart Total capital
  Debt to Capital, Comparison to Industry
chart POSCO1
  Industry, Basic Materials

Source: Based on data from POSCO Annual Reports

2011 Calculations

1 Debt to capital = Total debt ÷ Total capital
= ÷ =

Interest Coverage

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    Dec 31, 2011 Dec 31, 2010
  Selected Financial Data (USD $ in millions, translated from KRW ₩)
chart Profit attributable to owners of the controlling company
chart Add: Profit attributable to non-controlling interests
chart Add: Interest expenses
chart Add: Income tax expense (benefit)
chart Earnings before interest and tax (EBIT)
  Interest Coverage, Comparison to Industry
chart POSCO1
  Industry, Basic Materials

Source: Based on data from POSCO Annual Reports

2011 Calculations

1 Interest coverage = EBIT ÷ Interest expense
= ÷ =

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