Management’s policy is to maintain a capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. Liabilities to equity ratio, net borrowings to equity ratio and other financial ratios are used by management to achieve an optimal capital structure. Management also monitors the return on capital as well as the level of dividends to ordinary shareholders.
| (In millions of won) | ||||||||
| December 31, 2016 | December 31, 2017 | |||||||
|
Total liabilities |
11,421,948 | 14,178,177 | ||||||
|
Total equity |
13,462,388 | 14,981,510 | ||||||
|
Cash and deposits in banks (*1) |
2,722,446 | 3,360,638 | ||||||
|
Borrowings (including bonds) |
4,778,770 | 5,603,118 | ||||||
|
Total liabilities to equity ratio |
85% | 95% | ||||||
|
Net borrowings to equity ratio (*2) |
15% | 15% | ||||||
| (*1) | Cash and deposits in banks consist of cash and cash equivalents and current deposit in banks. |
| (*2) | Net borrowings to equity ratio is calculated by dividing total borrowings (including bonds) less cash and current deposits in banks by total equity. |