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Cash doesn’t equal profit because they represent two different financial concepts. Cash refers to the liquid assets a company has available at a given moment, while profit is the income that exceeds expenses over a specific period, typically measured through financial statements. 

A company can have substantial cash flow but still operate at a loss if expenses exceed revenues. Conversely, a company could show a profit on its income statement but struggle with cash flow if income isn’t collected promptly or if significant expenses are incurred before receiving cash inflows. 

Additionally, factors like accounts receivable, inventory, depreciation, and deferred revenue can further complicate the relationship between cash and profit. Understanding the distinction is crucial for evaluating a company’s financial health and sustainability.