Cash Flow Red Flags & How to Get Ahead of Them

While profitability is often the key focus for most distribution companies when evaluating business health, it is essential not to overlook an equally important factor: cash flow — specifically how money moves in and out of the business. Cash flow is integral to a company’s financial vitality and challenges — such as long payment terms, seasonal demand, delivery delays or rising inventory costs — can disrupt the delicate balance necessary for ongoing success. Without adequate liquidity, even the most robust distributors may find themselves struggling to fulfill orders, grow, or, in some…