Issue 002 • Profitable Companies Still Run Out of Cash
Learn why profit and cash flow are not the same—and why understanding the difference is essential for every growing business.
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