Tag: How can a profitable company go broke

How can a profitable company go broke? (Profit into cash to avoid failure)


Even profitable businesses can go broke if the cash flow is not sufficient to continue trading. There are many reasons why certain profitable companies can go under. This can include what’s termed over-trading or simply because the business fails to collect money due from customers in a timely fashion. Whether a business survives or not is dependent on the way the business operates and manages its finances. If management don’t operate correctly, the business could end up in bankruptcy.