For a new venture to survive and grow it needs to be financially viable. This can mean a number of different things. For it to be attractive to an equity investor - and the founder - it needs to be profitable and efficient. For it to survive it needs to be sufficiently liquid to enable it to pay its bills. For it to be attractive to a banker offering to lend money it needs to be low risk - and risk is equally relevant to the founder and equity investor. To assess these things involves looking at a range of different concepts and measures. Profit is the difference between your sales/turnover and your costs. The higher the profits of a commercial business the better. However, profit is not the same as cash. You may not have received payment for your sales nor indeed paid your costs. You can therefore be profitable, but illiquid - or vice versa. The two things are different. Profit measures how all the assets of the business have increased through your trading activities (sales - costs), not just cash. It is true that eventually the profit should turn into cash, but meanwhile bills and wages have to be paid and, if you do not have the cash to pay them, you may go out of business. Profitability is shown in the income statement of a business.
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