The Ask Ruth Webinar is this Thursday, October 20, 2025 at 11 AM Eastern
Topic: The Relationship between Profitability, Working Capital, and Current Ratio
Click here for details and to register
Now onto Financially Fit Business
Pay attention to the bottom line as your company grows
The P&L Graph above belongs to an owner only cares about growing the top line – the blue revenue line which has grown significantly.
Look what’s happening to the bottom line profit (purple line). It’s decreasing as revenue increases.
If this continues, this company will grow itself out of business.
How? By running out of cash to pay its bills.
The challenge is changing the owner’s mind from a revenue perspective to a profit perspective.
His comment? “No revenue growth is boring.”
My retort – “No profit will kill you.”
I challenged him to, in 2026, increase profits by 30% instead of increasing revenue by 30%. Not boring and a great challenge.
And, it will save his business.
Death by this little cut – paying attention to revenue only and ignoring the bottom line.
Next week – another little cut.
Thanks again for reading Financially Fit Business. I appreciate you!
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This is a fascinating look at why we buy and how to really get prospects’ attention.
And of course, some of the analysis was done through the use of AI.
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