Explore BrainMass

Explore BrainMass

    Funds Flow and Ratio Analysis

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    I am struggling with this question can you describe the primary difference between "funds flows" analysis and ratio analysis. Which analysis technique is preferred and why?

    © BrainMass Inc. brainmass.com March 4, 2021, 9:36 pm ad1c9bdddf

    Solution Preview

    Fund flow analysis is the analysis of the funds flow of the organization. Fund flow analysis deals with the changes in working capital position of the company between the two different periods. Fund flow describes the changes in current assets and current liabilities of the organization. It reveals important changes in the utilization and disposition of resources. It is a statement of changes in the financial position.
    Ratio analysis is the analysis of financial position of the company in terms of liquidity, ...

    Solution Summary

    This solution of 338 words explains the differences between funds flow analysis and ratio analysis. It also discusses which analysis technique is preferred and why.