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Net income positive, negative cash

R3

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#1
rubicksQube35K

rubicksQube35K

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Month of June ended with a 24% profit margin (about 37 million income) but my cash balance is - 13 million. Can you somehow help me figure out what to do? Or was this supposed to happen (no, it wasn't, the numbers don't add up)

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#2
TheMarmaliser

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Stop spending money until you're back in the green and have money. If you spend a large amount of money, and then staff pay, aircraft leases, maintenance, and other expenses come out, you'll fall into the red.



#3
Mr Tree

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Significant expenses such as staff, aircraft leasing, etc are paid at en masse at fixed points throughout the month, so for instance in this case it looks like a bunch of your expenses were paid when the date changed to July 1st and you didn't have the cash to fund all of it.

 

It's not a huge issue as there is no interest to worry about, but if it happens constantly it can start jeopardizing lease payments, etc.

 

Your options are to slow growth or (better) build a cash reserve you won't touch to take care of monthly expenses (paid at the halfway and end points of each month)







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