And as a result of this inflated and fallacious definition, any. behavior or environment that promotes health can be misconstrued as a resilience factor. It has been suggested that there is a distinct difference between recovery and resilience.
Tips on Understanding Cash Flow Statements. Understanding a companyâs cash flow statement is a key element to understanding the potential risk the company poses as an investment. When analyzing the cash flow statement, look beyond simple positive and negative figures. Take the time to understand where the money is going and why it is going there. Do this and you will gain a greater understanding of the cash flow statement as a whole.
Cash flow statements explain how the company's cash balance changes between balance sheet dates. For example, if the balance sheet prepared on March 31 (the end of the second quarter) shows you have $10,000 in cash, and the balance sheet from June 30 (the end of the second quarter) shows $12,000 in cash, then the cash flow statement for the third quarter will explain where that $2,000 increase came from.