The importance of Profits getting converted to Cash
What happens when accounting profits are higher or lower than cash profits? How does it impact the company? Why is it important for investors to look at this? Read on below to find out more, but before that let us first understand:
What are profits from a perspective of accounting and cash flow?
Accounting profits are net profits that are recorded in the profit and loss statements of companies. Cash profits or cash flow from operations are . . .