Cash Flow is King

Profit dominates business-related headlines. This month, Apple announced the biggest quarterly profit ever made by a public company. Apple reported a net profit of $18bn in its fiscal first quarter, exceeding the $15.9bn made by ExxonMobil in the second quarter of 2012. Net profit after interest and tax, or the ‘bottom line’ (the last line on an income statement), is a key figure for a business. Firms naturally emphasise the ‘bottom line’, because this is the sum available for distribution ...