I overheard some executives in the lobby the other day say that we were out of cash, but still profitable.  What does that mean?

Dear Tleed:

This is a hard one, because you may have only heard bits of the story; therefore, there could be lots more to it.  Here’s what I would do, before you go running off and quit or telling others and start panic all over the office, think about this.

These days, many companies are out of cash (both profitable and not) but that does not mean they will close.  Management many need to reorganize, downsize, increase fees and/or decrease expenses to live through the perfect storm that our country is in.  This type of economy forces companies to take these types of measures….so don’t bail just yet.  A profitable company these days is worth lots….they (the company) may merge or sell?  All of which may have a long term positive outlook for you and others?

Contact your CFO or Benefits Department and see if you can obtain a copy of the company’s last financial report.  Review it in detail and ask questions if you’re confused about something.

As I recommend to all (during an economy such as this one) keep all your employment options open, but don’t jump ship until you know it’s going down!

Write me back please, I’d be very interested to hear the outcome of this.

Pressley Carson