Someone looked into the financial health of the Big 4 based on their 2023 performance, and surprisingly, YG came out on top for some reason

  • I'm not an econ student, so I didn't really get all of this. If anyone can break it down and explain it better, that'd be great!


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    According to this Army, HYBE isn't in debt. *shrugs*

  • This is for Finance Major students or Business major students not Econ Major students!

    But I can actually analyse all big3+ Hybe balance sheet, income statement and cash flow statement!


    This particular post actually has many flaws in it! I will only point out few! High liquidity doesn’t always mean “good”! For average company in the market it is recommended to keep your liquidity between 1.2 and 2(I’m not familiar with Entertainment Industry or Korean Market but I’m talking in general)! Very high liquidity means underusing your capital!


    Leverage Ratio or Acid Test highest ceiling is 2.00 which is not the case for any of these companies!

    Highest one is Hybe which has 0.72 ratio, which is also relatively good! And not more than 1/3rd of liabilities should be long term! And there can be tax privileges for borrowing, so even if company has a lot of assets fixed, liquid etc. they better borrow because it helps to save a lot of money


    Also he/she conveniently missed many parts that should be calculated, so we can’t make a proper conclusion according to his/her analysis of Balance Sheet of those companies!


    He/She seems doesn’t know as me how Entertainment industry works in Korea and Globally!


    And 1 year report doesn’t depicts the whole picture about company’s performance

    And we should also look and analyse Income statement and cash flow statement of the company!


    These days I’m super busy but I might analyse all of those things in couple of weeks! Of course it doesn’t mean that my financial analysis will be better or truthful(I’m not finance student), but it will somehow paint in which state these companies are and people can make their own conclusions based on numbers, because Numbers don’t lie!

  • the problem here is that YG is highly dependable on BP group results

    and the longer BP won't make a comeback the less 'safe' company is


    is I would easily put JYP higher just basing on that


    another point is if any of assets are possible to sell? so for example if company owns some building, or for example they own shares in company A or B, then if there is demand for such thing, this company also is 'safer'

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  • I agree but I doubt company would disclose such confidential information

    what do you mean my friend?


    most companies especially public traded ones listed on stock exchanges have to by law disclose all three sets of accounts


    balance statement

    income statement

    cash flow statement

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