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.
The bottom line of the cash flow statement shows the net increase or decrease in cash for the period. Generally, cash flow statements are divided into three main parts. Each part reviews the cash flow from one of three types of activities: (1) operating activities; (2) investing activities; and (3) financing activities. Operating Activities. The first part of a cash flow statement analyzes a companyâs cash flow from net income or losses. For most companies, this section of the cash flow statement reconciles the net income (as shown on the income statement) to the actual cash the company received from or used in its operating activities.