Why We Focus on Liquidity Analysis
Back in 2017, I was consulting for a
mid-sized manufacturing company in Incheon. Their profit margins
looked solid on paper, but something felt off when I dug into their
cash flow patterns.
Turns out, they had a serious liquidity
crunch brewing. Their current ratio was fine, but their cash
conversion cycle told a different story entirely. That disconnect
between surface-level metrics and actual financial health became our
teaching foundation.
We realized that most finance
professionals could calculate ratios, but few could interpret what
those numbers meant for day-to-day operations. That's where real
financial analysis begins.
Our programs now focus on this practical
gap. Students learn to spot liquidity issues that traditional metrics
might miss, especially in Korea's unique business environment where
supplier relationships and seasonal patterns create specific cash
flow challenges.