Importance of Distributable Cash as a Business Health Metric

Understanding the bottom line of a business can be complex, as it can result from reinvesting profits for growth or struggling financially. The Inc. 500 focuses on revenue rather than profit for simplicity. Key metrics for assessing business health include evergreen metrics, North Star metrics for optimization, and team-based metrics for overall performance evaluation. Among these, distributable cash stands out as a crucial metric, emphasizing the importance of distributing profits to maintain accountability and avoid wasteful spending on ego-driven expenses.