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.
Determine the company's beginning cash balance. The statement of cash flows covers the entire accounting period, beginning with the cash balance at the start of the period. This balance appears as the ending balance on the previous period's statement of cash flows. It can also be calculated from the balance sheet.