Regarding point #2, many in the finance world (which I work in) consider cash flow positive a better representation of actual profitability than the actual net profit/loss reported on the P&L. In short, cash flow shows if the actual core business is bringing in money or losing money, while the net profit includes a lot of "noise" (probably not the best word to use but can't think of how to phrase this). For example, depreciation is an expense reported on the P&L but the company isn't actually moving money out of their accounts to pay someone for depreciation. This is known as a non-cash expense and effects the overall net profit reported on the P&L. Also, companies can be motivated to show 0 or negative profit on the P&L to avoid paying corporate tax. Amazon was notorious for this as any profit they had, they would re-invest back into the business.
Whenever I look at the profitability of the company, I don't look at the P&L number but jump to the cash flow statement and look at Net Cash Flows from Operating Activities (the first of three). First, I look if this positive, and second, if it is growing over time.
Whenever I look at the profitability of the company, I don't look at the P&L number but jump to the cash flow statement and look at Net Cash Flows from Operating Activities (the first of three). First, I look if this positive, and second, if it is growing over time.
Hope this helps