South Korea's manufacturing firms have improved their ability to repay short-term debt with the cash inflow from their operations in recent years, data showed Monday, despite Asia's fourth largest economy struggling with sluggish growth.

The cash flow coverage ratio for 674 manufacturers listed on the benchmark Korea Composite Stock Price Index rose to 124 percent last year, up from 107 percent in 2013, according to the statistics by the Korea Stock Exchange.

The comparable figure for the 65 largest manufacturing firms was 171 percent last year, up from 154 percent in 2013, showing greater improvement than smaller firms in their capacity to repay debts.

The cash inflow for the 65 largest manufacturers, meanwhile, was tallied at 68.6 trillion won ($60.6 billion) during the January-June period, accounting for 93.8 percent of the 73.2 trillion won total cash inflow of the 674 manufacturers on the KOSPI.

The ratio compares with 90.2 percent in 2013 and 86.7 percent last year.

Despite the increased cash inflow, manufacturers reduced investment amid growing uncertainties at home and abroad.

The 65 largest manufacturers reported 108 trillion won in investments made last year, down from 133.8 trillion won in 2013. (Yonhap)