Will performance improve going forward as new orders increase and the order backlog accumulates?
Is an increase in contract assets and contract liabilities a positive sign?
And when will the orders received now show up as revenue and profit?
Even if you have studied financial statements, you may often find yourself stuck when analyzing an actual company, unsure how to connect the current numbers to future performance.
For more than 15 years, I have analyzed numerous companies across various industries in corporate finance and credit evaluation. In the process of assessing companies’ business structures and financial risks, I have learned that it is more important to track how changes in a business flow through to the numbers in its financial statements than simply to calculate financial ratios.
Based on this experience, this course analyzes the business reports and financial statements of actual companies, including HD Hyundai Heavy Industries, Doosan Enerbility, and HD Hyundai Electric. We will connect changes in new orders and order backlogs, contract assets and contract liabilities, production lead times, ship prices and costs, operating profit margins, and cash flows to trace step by step how orders are converted into actual results. Through case studies of construction companies, we will also examine the reliability of recognized revenue and profit by analyzing contract assets, estimated costs, cost ratios, and cash flows.
The important thing is not to memorize any single indicator like a formula. Even the same contract liability multiple can have a different meaning depending on a company’s business structure and production lead time, and even if the order backlog increases, whether this leads to an actual improvement in profitability must be verified separately.
Therefore, in this course, through real-world case studies, you will learn which numbers to examine first for each company, what to review alongside them, and how to verify whether those changes actually lead to revenue and profit.
By the end of the course, the goal is for you to move beyond simply confirming that “new orders have increased” or “contract liabilities have risen.” Instead, you will develop a framework for analyzing companies that enables you to independently assess and verify the direction of future performance from current numbers by following the flow of work → revenue → profit → cash.