Fund Flow Statement

Fund Flow Statement – A Fund Flow Statement is a financial report that shows the movement of funds (working capital) within a business during a specific period. It explains where funds were generated (sources) and how they were used (applications), helping assess a company’s financial health and long-term liquidity. Unlike a Cash Flow Statement, which focuses only on cash, a Fund Flow Statement tracks overall changes in working capital — including adjustments in assets and liabilities — to reveal how operational, financing, and investment activities impact the company’s funding structure.

Examples/Uses: Analyzing whether operating activities are generating sufficient funds. Checking how funds are utilized (e.g., purchasing fixed assets, repaying loans). Identifying reasons for change in working capital over the year. In essence, a Fund Flow Statement helps management and stakeholders understand how funds move within the business and evaluate longer-term financial decisions.