Over the years, I’ve collected a few business phrases that resonate: Profit is an opinion Balance sheets are opinions Cash is truth Debt is truth Cash flow is a truth Price is truth Profit is an opinion because there are billions of ways to calculate it, including millions of ways to calculate gross and net profit and millions of ways to manipulate the data. There may be quadrillions of ways to calculate balance sheets based on asset values alone. Enough said. Cash and debt are concrete, real numbers we can look at every day. The change in cash and debt…
Read More
