CA Prabhakar Kumar
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15/02/2026
Why Profit Is a Vanity Metric
A company can show profits and still fail.
Why?
Because cash flow pays salaries, vendors, and EMIs — not profit.
Profit looks good on paper.
Cash keeps the business alive.
Every founder must track:
• Operating cash flow
• Working capital
• Burn rate
Cash is king — still.
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