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What is more important -- solvency or profitability?

07 Oct 2015 5:00 AM | Administrator

By CCGI in Jamaica Observer - Business

It is obvious to business people that companies should make a profit in the long run as otherwise they will go out of business. However, it is much less well known that most organisations fail because they have not been managing their cash flow and have become insolvent.

In the short run, survival of the company depends mainly on ensuring that bills from creditors can be paid; it is not about making insufficient profit. This article explains what every director needs to understand about their company making a profit and being able to meet its financial obligations.


You can easily determine if your company is profitable by analysing ... read the full story here

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