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Business
Cash Flow vs Profit
Profitable companies still go bankrupt — here's why.
Profit is an accounting concept. Cash flow is the actual money moving in and out of your bank account.
A business can book a $1M sale (profit) but receive payment 90 days later. If payroll is due tomorrow, that profit can't cover it.
Investors increasingly track Free Cash Flow because it's harder to manipulate than reported earnings.