the.com/cash flow
profit is an opinion, cash flow is a fact you can spend.
means it is the actual money moving in and out of a business over a period, regardless of what the accountants call profit.
from emerged as a distinct financial concept in mid-20th-century corporate accounting, once analysts realized profitable companies were still going bankrupt because profit is booked on paper while bills demand real money.
profit vs casha company can be profitable and still go broke
three typesoperating, investing, and financing flows, tracked separately
free cash flowwhat is left after expenses buy back or grow
warren buffett rulehe reads cash flow statements before income statements
for instance
enron 2001 — reported profits for years while cash flow quietly bled out
amazon 1997-2015 — ran near-zero profit for years, prioritized cash flow growth instead
wework 2019 — ipo collapsed partly on investors finally reading its cash burn