A contents page and study guide threading together ten instalments on fundamental analysis, in four stages: statement basics, accounting traps, profitability and valuation, and capital allocation.
An unqualified opinion is a minimum condition, not a guarantee of quality. How to read audit opinions, and how to find going-concern and related-party risk in the notes.
The five destinations for cash a company earns, and the tests for good and bad allocation, seen through Muhak’s dividend increase and its thick net cash.
EV adds debt and subtracts cash to show the price of buying a company outright — Muhak’s is just KRW 6.6bn. How EV/EBITDA and DCF work, and the traps of depreciation and assumptions.
What PER and PBR actually measure, and the traps behind them — peak earnings, value traps, and why a low multiple needs a reason and a catalyst before it means anything.
ROE splits into margin, asset turnover and leverage, and the split shows whether a high return was earned or borrowed. Plus ROIC, the stricter measure of the business against its cost of capital.
Consolidated bundles the subsidiaries in, separate covers the parent alone, and the gap can be large. Cuckoo Homesys’s 2024 numbers show why scope and attribution decide what a figure means.
Operating, investing and financing activities explained, with the real gap between net profit and operating cash flow at Muhak and Osung — and what an unexplained divergence signals.
The balance sheet stands on one identity — assets = liabilities + equity. Read with Muhak’s real figures: asset quality, net debt and net cash, and the gap between book and market value.
The income statement line by line, from revenue down to net profit, with the actual DART figures of Cuckoo Homesys and KT&G — gross margin, operating margin and the traps of one-off items.