Fund Flow vs Cash Flow: Key Differences Explained
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Fund flow refers to the movement of money into and out of a business over a specific period. It is used primarily in analyzing a company’s ability to generate cash and fund its operations and investments. Unlike cash flow, which is more concerned with the cash movement, fund flow looks at the movement of funds across various sources, such as investments, loans, and equity. Understanding the difference between cash flow and fund flow is crucial: fund flow focuses on the sources and uses of funds, while cash flow measures actual cash inflows and outflows.
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