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 determines the quality of a company's income; if net cash flow is less than net income, that could be a cause for concern. Cash flow statements are divided into three categories: operating cash flow, investing cash flow and financing cash flow. Operating cash flows are those related to a company's operations, that is, its day-to-day business.