Here is a sentence that sounds like nonsense and is one of the most important ideas in business.
A company can be profitable and go bankrupt in the same year.
Not a struggling company. A growing one, with rising sales, happy customers, and a profit on every single item it sells.
It happens constantly. It is one of the most common ways businesses die.
And the reason it happens is the same reason a household with a good income can find itself unable to pay a bill in a particular week.
Profit and cash are two different things. Almost nobody is taught the difference, and it explains an enormous amount about how money actually behaves.
Let me walk you through it. This one is genuinely useful.