Cash Flow, and Why Cash Is King
"Profitable companies don't go bankrupt" is one of the most expensive misconceptions in business. They do — routinely — because profit and cash are different things, and it's cash that pays salaries, suppliers, and rent. A company can be profitable on paper and still die when the bank account hits zero. The cash flow statement is the document that tells the truth about the money actually moving, and understanding it — and the profit-versus-cash gap — is what separates real financial literacy from the illusion of it.
'Profitable companies don't go bankrupt' is one of the most expensive misconceptions in business. They do — routinely — because profit and cash are different things, and it's cash that pays salaries and suppliers. The cash flow statement tells the truth about the money actually moving, and understanding it separates real financial literacy from the illusion of it.