Cash Flow vs. Profit: What’s the Difference?
March 10th, 2022
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Cash flow and profit are both important financial metrics in business, and it isn’t uncommon for those new to the world of finance and accounting to occasionally confuse the two terms. But cash flow and profit are not the same things, and it’s critical to understand the difference between them to make key decisions regarding a business’s performance and financial health.
For investors, understanding the difference between profit and cash flow can make it easier to know whether a profitable company is actually a good investment based on its ability to remain solvent in times of economic crisis. Read more…