There are several reasons why company go to bankruptcy while having a good profit in financial statements.
Bankruptcy means company dint have enough cash to run their day to day activities, not enough cash to pay, Banks, Payable, Suppliers, Salaries etc
1: Company are showing fake sales,
2: Company having More sales on Credit
3: Company delaying payments to payable,s due to cash flow.
4: Due to Lack of reserves.
infect due to less cash cash equivalent.
there are major companies in world which are having good profits, good will and a worldwide brands but gone bankrupt.