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Working Capital vs. Profit: Why a Profitable Business Can Still Run Out of Cash Business Finance · Working Capital Working Capital vs. Profit: Why a Profitable Business Can Still Run Out of Cash Two numbers, both taken from the same set of books, can tell almost opposite stories. Understanding why is one of the most useful things a business owner can learn. GoMoneyVibe  |  Business Finance Desk  |  11 min read Photo: N. Voitkevich / Pexels A business owner opens the year-end income statement and sees exactly what they hoped to see: revenue up, expenses under control, a healthy profit at the bottom. Six weeks later, that same owner is on the phone with the bank, trying to arrange short-term financing to cover payroll. Both moments are real. Neither one is lying. What's actually happening is that profit and working capital are answering two completely different questions, and a business can score well on one while quie...