Reportedly, as per the news coming with respect to two big tech giants, name are Samsung Electronics and LG Electronics. As their inventory assets go increased in the third quarter. This is intended to increase raw material procurement in order to overcome the risk arising due to the supply chain. While the global demand for their products is not recouped amid the ongoing recession.
Talking about Samsung Electronics which in total had more than 57 trillion won in the third quarter with a year-on-year increase of 5.16 percent. While its inventory assets have continued to be on the higher side since the outbreak of COVID-19. If talking about specific figures then it was approximately 6.9 trillion won in Q3, 2019. Also, 5.8 trillion won in Q4, 2019, 32 trillion won in Q4 2020, and 41 trillion won in Q4, 2021.
Whereas, on the other hand, coming to the inventory assets of the third quarter of LG Electronics. Then it records an increment of 12.5 percent year on year to 11.2 trillion won. Also, this company was less than 5.9 trillion won at the end of 2019 respectively. But at the same time increased to 7.4 trillion won and 9.7 trillion won at the ends of 2020 and 2021 respectively.
Lastly, when it comes to inventory turnover, Samsung Electronics’ inventory records fell from 4.6 to 3.8. While LG Electronics fell from 6.1 to 5.8. It clearly indicates that their products were sold less in the third quarter of this year as compared to the same period of last year.