Against all odds the question deserves our attention.
Profit is a necessary condition so that a company generates cash flow .
Is it enough?
If a company needs to invest significantly more than the level of its profitability as a condition of such profitability, cash flows may well wait.
And even in the scenario where the business generates the expected cash flows, does that mean that the company will become wealthier ?
One should not forget the shareholder. The wealth of the shareholder is assessed based upon the dicounted value of the prospective cash flows of the company. It is a little bit as if the job of the shareholder was to pre-empt the company’s future profits.
So it seems better not to take into account the wealth of the company and to bear in mind that it is the shareholder who decides…
No easy task for a company to become rich!
Dominique F. Pasquier