For example, Snap Inc. (Snapchat) had a net income of – $1.43 Billion in 2022.
In: Economics
You’re only “out of the game” when you don’t have enough cash to pay your suppliers, employees and taxes.
If you can borrow or have a huge cash reserves, you can have losses in the P&L. Conversely, you can have a positive P&L and huge cash flow issues at the same time
For an Eli5 comparison :
* you have a job, so you know you’ll get paid at the end of the month, and you know how much you need for rent, groceries, etc .. that’s your P&L and hopefully it’s positive
* what you have *now* on your bank account are your cash reserves
If you lose your job, your P&L will be negative, but as long as your bank account is not empty, you can survive and try to fix the situation
Opposite situation, you still have a job, but there’s a huge unexpected bill that you must pay *now* and it’s more than what’s on your account. It doesn’t matter if you could repay it later, you’re in trouble
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