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.
1 If the cash from operating activities is less than net income, a red flag is raised as to why the reported net income is not turning into cash.  Some investors believe that cash is king. The cash flow statement identifies the cash that is flowing in and out of the company. If a company is consistently generating more cash than it is using, the company will be able to increase its dividend, buy back some of its stock, reduce debt, or acquire another company.