I think GP is using 'profit' to talk about wealth extraction from the business. Putting surplus cash into an emergency fund, maintaining a cash balance for unfo

I think GP is using 'profit' to talk about wealth extraction from the business. Putting surplus cash into an emergency fund, maintaining a cash balance for unforeseen costs, or similar wouldn't be quite the same thing. One way to think about that is that if your company has a financial goal of $X for a cash reserve, the lack of it can be considered a liability, diminishing net profit.