Issue 002 • Profitable Companies Still Run Out of Cash

Executive Brief • June 26, 2026 • Two Miles Advisory

Executive Perspective

One of the biggest misconceptions in business is that profit and cash are the same thing.

They're not.

A company can report its best year ever and still struggle to make payroll.

Why?

Because profit is an accounting measure.

Cash is reality.

Revenue may be tied up in unpaid customer invoices.

Inventory may be sitting on warehouse shelves.

Loan payments, equipment purchases, taxes, and payroll all require cash—not just profit.

The businesses that survive periods of rapid growth aren't always the most profitable.

They're the ones that understand cash flow.

Boardroom Question

If your sales doubled next quarter...

Would your bank account grow, or shrink?

One Better Decision

Review your last three months of financial statements.

Don't just look at your profit.

Compare it to the change in your cash balance.

If they tell different stories, ask why.

Two Miles Principle: Profit measures success. Cash determines survival.

Think Like a CEO.

Decide Like a CFO.

Build Like an Owner.

Published by Two Miles Advisory
Financial Consulting & Advisory