Profit Is The Muscle Of A Corporation; Cash Is The Blood!! ─ Law #2
Companies can run for a long time with negative profits, but without cash they will die.
It is part of the American culture that a company’s stock price will go up when the company announces massive losses “as cleaning up their act.”
It is very difficult for the layman to comprehend large corporations reporting hundreds of millions (and even billions) of dollars of losses in one quarter. Creative accounting can make the profitability of a company look good and can be misleading as it relates to cash availability and survival.
Thinking as a supplier, you must understand that a profitable company may still not be able to pay its bills.