system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: How can large companies that have been highly profitable for several years, suddenly be declaring bankruptcy after no income for just a few months?
gpt
>How can large companies that have been highly profitable for several years, suddenly be declaring bankruptcy after no income for just a few months?

Because the companies aren't designed to be able to idle; they're reliant on an inflow and outflow of money that comes with doing business. Most companies aren't socking away money in case of rainy days because doing so makes them significantly less profitable, to the point of just not being worth it in the first place.

Further; just because the company shuts it's doors temporarily doesn't mean they stop spending money. They'll still have people on payroll, and they'll still have bills and debts to pay.