Comparison Chart
BASIS FOR COMPARISON | CASH FLOW | FREE CASH FLOW |
---|---|---|
Meaning | Movement of cash of an organization, resulting in either increase or decrease of its cash is known as cash flow. | Cash available with the organization to be distributed among security holders is known as free cash flow. |
Calculation | The sum total of Operating, Investing and Financing cash flows. | Operating Cash flows less Capital Expenditure. |
Advantage | Helpful in determining the liquidity of the company. | Helpful in determining a company's financial health. |
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