Prologue | Wealth Opportunities Await Those Who See Cash Flow

Part 1: Don't Be Fooled by the Numbers, Find the Flow
― The first step to understanding the essence of financial statements

Chapter 1: Surfing the Cash Flow Wave: The Secret to Sustainable Growth
Insights from a Cash Flow-Oriented Management Practice | Businesses thrive when money comes in first | Why Pursuing Sales Only Leads to Failure

Chapter 2: How to Read Companies Beyond the Limits of Information
Insiders and Outsiders Know Different Information | Finding the Truth in the Fog with Financial Statements | Warren Buffett's Investment Secrets

Chapter 3: A Record of Money Flow: The Journey of Accounting
Accounting is "Collecting and Calculating" | From the Medici Family to Wall Street: The History of Money | How Did People in the Past Manage Money? | Money Sense Modern People Need to Know

Chapter 4: Financial Statements: Where and How to Find Them
Where are the financial statements? | How to use the electronic disclosure system DART | Practical! Viewing financial statements on DART | Finding financial statements on corporate IR pages | How to use portal sites like Naver, Yahoo, and Bloomberg | Generative AI: A powerful tool for exploring financial information

Chapter 5: Investment Opportunities Revealed by Ferrari
Business Ideas Found in Documentaries | Business Analysis: Start with Everyday Life | Understanding the Essence of Business Through Numbers

Chapter 6: Financial Statement Analysis: What You Need to Know
What You Miss by Looking Only at Sales and Assets | Types of Financial Statements and Analysis Points | Financial Statements Shouldn't Be Viewed Separately

Chapter 7: Financial Statements: The World of Business Through Five Lenses
Balance Sheet: How's this company doing right now? | Income Statement: The tug-of-war between revenues and expenses | Cash Flow Statement: The cycle of money: earning, growing, and financing | Statement of Changes in Equity: The traces of capital etched like rings | Notes: The context behind the numbers | Seeing all five together reveals the full picture.

Chapter 8: Discovering a Company's True Value Beyond Ratios
Four Key Pillars of Financial Statement Analysis | Five Key Ratios for Understanding a Company's Health: Profitability, Liquidity, Stability, Activity, and Growth | Period-by-Period Analysis and Within-Period Analysis | Values ​​Beyond Numbers Matter Too

Part 2: Don't Be Fooled by Sales, Read the Essence
― Beyond the traps of apparent growth

Chapter 9: Sales: Can We Really Trust the Numbers?
The Most Common Financial Metric: Sales | What's the Difference Between Sales, Revenue, and Profit? | In-Depth Analysis of Sales: The Case of Carrot Market and Nongshim | The Cashier Amount Isn't Sales

Chapter 10 Transaction Amount vs.
Don't get confused with sales
Transaction Volume in Platform Businesses | The Difference Between Transaction Volume and Revenue: A Case Study of Woowa Brothers | Is This a Sustainable Business Model?

Chapter 11: Why Ediya Has More Stores, But Starbucks Has Higher Sales
Two Revenue Structures in Franchise Businesses | Where Does the Gap Between Starbucks and Ediya Come From? | Revenue Recognition in Distribution Platform Companies: The Case of Coupang

Chapter 12: Net Sales: A Look at a Company's True Strength
The Difference Between Gross and Net Sales | What You Can Learn from Items Subtracted from Sales | The Role of Net Sales in Preventing Fraudulent Accounting

Chapter 13: Sales Flow and Value Chain
How do sales flow? | Sales Flow: Manufacturer → Distributor → Consumer | Using Terms Precisely to Avoid Confusion | Sales is the Flow of Value

Chapter 14: Different Sales Calculation Points for Each Industry
When are sales recognized? | Sales recognition timing varies by industry | Understanding the sales of a conglomerate: The case of Samsung C&T

Chapter 15: The Puzzle of Governance: Discovering the Hidden Links in Business
Curiosity That Started on an Airplane | Understanding Governance Structures Through Business Reports and IR Materials: The Case of Jeju Air | Dissecting Complex Governance Structures: The Case of Kakao

Chapter 16: The Matrix of Governance: Interpreting It Through Consolidated Financial Statements
Why are consolidated financial statements necessary? | Essential for assessing a company's overall performance | Separate and consolidated financial statements must be analyzed together | Numbers that appear in separate statements but disappear in consolidated statements: The case of Samsung Electronics

Chapter 17: Equity Method Profit and Loss: See the Big Picture
How Much Control Does a Parent Company Have? | Accounting for Subsidiaries and Associates: Consolidation and the Equity Method | Net Income Volatility Due to Equity Method Gains and Losses: The Case of SK Telecom | Valuations Vary Depending on Investment Purpose: Fair Value Financial Assets vs.
Affiliated companies

Chapter 18: Business Division Performance Hidden Behind a Single Sales
Business Segment Analysis Methods | 3D Business Segment Analysis: The Case of Hite Jinro | Why Business Segment Analysis Matters: The Case of LG Chem | Investor Inertia Caused Disaster: The Case of GE | Accounting Standards Moving Toward Strengthened Segment-Specific Disclosure

Part 3: Don't be fooled by the profits, discern the truth.
― Analyzing the power of cash

Chapter 19: A Complete Analysis of the Income Statement Structure
When looking at an income statement, consider the industry first. | How each line item connects to business activities. | The meaning of each line item on the income statement. | The income statement: the foundation for strategic decision-making.

Chapter 20: Reading Corporate DNA from the Income Statement
The Relationship Between the Income Statement and Cost Structure | Cost Structure Case Study: Romanee-Conti vs.
Mass-Production Wineries | Leverage and Cost Structure

Chapter 21: The Path to Profit Interpretation: The Financial Statement as a Life Map
Financial statements: Recording the past to predict the future | Why are they called "balance sheets"? | The story of Pacioli, the father of double-entry bookkeeping | Why you should start with the balance sheet

Chapter 22: Analyzing the Financial Statements Item by Item
The Overall Structure of the Balance Sheet | Understanding Assets | Analyzing Liabilities | Understanding Capital Structure

Chapter 23: EBITDA: The Global Language Translating Profits
Understanding terminology is fundamental in both management and investing. | What is EBIT? | What is EBITDA? | EBITDA and EV/EBITDA: The Keys to Corporate Valuation | EBITDA's Limitations: Supplementing It with the Cash Flow Statement

Chapter 24: Good Profit vs. Bad Profit: The Flow of Money Is the Criterion
The true value of profits ultimately depends on whether they are converted into cash | Managing Earnings Quality: The Merck Case | Non-cash Costs That Affect Earnings Quality | The Cash Flow Timing Game: Working Capital Management | The Importance of Repeatable Earnings and Cash Flow

Chapter 25: Working Capital is the Oxygen of Business
The Art of Balance: Working Capital Management | Case Studies of Working Capital Management Successes and Failures | Properly Interpreting Net Working Capital | Net Working Capital Management: The Case of Walmart and Coupang | Working Capital Turnover Indicators: The Case of Samsung Electronics | Working Capital Management Determines Corporate Survival

Part 4: Don't Be Fooled by Appearances; Follow the Path of Money
― The flow of value that determines the future of a company

Chapter 26 Winning Companies vs.
Losing company
Flexibility to Adapt to the Times: Microsoft's Triumph | Past Glory Now Shackled: Novell's Decline | The Consequences of Differences in Business Models and Cash Flow | The Key to a Persistently Winning Company

Chapter 27: Special Mission! Shorten the Cash Conversion Period!
Fast incoming, slow outgoing | What is the cash conversion period? | The God of Cash Conversion Period Management: The Apple Case | The Conflicting Positions of Apple and Foxconn | Is Our Cash Circulating Properly?

Chapter 28: The Three Branches of Cash Flow
Cash Flow from Operating Activities: A Measure of Core Business Performance | Cash Flow from Investing Activities: Investing for the Future | Cash Flow from Financing Activities: The Flow of Funds Raised and Repaid | The Organic Connection of the Three Activities

Chapter 29: Growth and Crisis Through Cash Flow: Analyzing Eight Patterns
Operating cash flow revealed only after adjustments | Seeing the big picture of cash flow through pattern analysis | Specific examples of 8 cash flow patterns | Developing pattern analysis skills

Chapter 30: Cash Flows to Become Power
Cash hoarded is a burden, not an asset | Why cash doesn't benefit businesses | How to make cash work for you: The cases of Alphabet, Nvidia, and Disney

Chapter 31: The Evolution of Key Indicators by Era: From Sales to Free Cash Flow
Corporate Evaluation Criteria Changing with the Times | Which Era Are You Looking at Now?

Chapter 32: The Emergence of the Real Hero: Free Cash Flow
Real money a company can spend freely | How is free cash flow calculated? | Why free cash flow is a key indicator of corporate valuation | The many things you can do with free cash flow | The power that determines a company's future: free cash flow

Epilogue | Deciphering the Flow of Money in Numbers

In an era where even companies with sales of 1 trillion won are going bankrupt despite being in the black,
Read the critical numbers that determine the fate of your company!

Cash flow is more important than sales or profits.
The latest financial statement analysis guide to identify promising companies!

√ Everything from how to read financial statements to the latest accounting trends, all in one place!
√ Learn vivid analysis know-how through actual domestic and international corporate cases, including Samsung and Apple.
√ How to identify a business model that will survive 10 years from now
√ Identify financial signals that can help you identify risky companies early on.
√ A complete explanation of the key indicators that determine a company's true value!

"Why would a company go bankrupt if it's in the black?" In a rapidly changing business environment, it's difficult to discern a company's true state based solely on sales and net income.
CPA Daejun Kang, who is competitively invited by 700 domestic and international companies, including Samsung, LG, SK, Hyundai Motors, POSCO, Kakao, Merck, and Siemens, presents a new standard for interpreting financial statements based on his extensive experience in management.
Now, we need to look at 'cash flow' rather than sales or profits.
Cash flow tells the whole story: from bankruptcies to fraudulent accounting to signs of crisis hidden behind a flashy facade.

The Power of Cash Flow, as Seen by Warren Buffett
The criteria for distinguishing companies that will survive 10 years from now!

In the past, sales volume was the key indicator of a company's success, followed by profit.
Now is the age of cash flow.
Sales may be manipulated on the books and profits may be temporary, but cash movements don't lie.
Cash flow is the number that Warren Buffett values ​​most and that Wall Street analysts always check.

The book provides key insights into analyzing companies by examining the differences in sales structures between Starbucks and Ediya, the distinction between Woowa Brothers' transaction volume and sales, an analysis of Kakao's governance structure, and the actual financial statements of companies we encounter in our daily lives, such as Ferrari, Tesla, Carrot Market, and Samsung Electronics.

The author emphasizes the importance of managing the "cash conversion period," pointing out that Apple's strategy of controlling cash inflows quickly and outflows slowly has created its current competitive advantage.
It also suggests ways to distinguish between growing and struggling companies by analyzing eight cash flow patterns.

Above all, through the most crucial concept of this book, "free cash flow," it teaches you how to determine how much real money a company can actually spend freely.
The author says this is a crucial criterion for distinguishing companies that will survive 10 years from now.

Financial statement interpretation methods that can be applied directly to practice
A solid compass in the cash flow era

Financial statements are not just numbers; they are the story a company tells.
You can gain insight into the business model behind sales, the company's DNA embedded in its profit structure, and even the management's strategy and execution capabilities revealed in cash flow.
The book also increases practical utility.
It reflects the latest trends, from how to find financial statements to how to use portals like the electronic disclosure system DART and Naver, to how to search for information using generative AI.
It is structured so that even those unfamiliar with financial statements can gain basic knowledge and deep insights all at once.
In an era where a cash flow-centric perspective is crucial for businesses, this book offers practical insights that can be widely utilized by managers, entrepreneurs, investors, and even practitioners and students learning financial statement analysis.
It will serve as a solid guide for anyone seeking a new perspective centered on cash flow.