Operating Cash Flow vs Net Income?

CFA Level I
#1

I don’t think CFO and NI are the same, but according to this CFAI Question, they are?

[question removed by moderator]

Interest Coverage Ratio = EBIT / Interest PMT

The question gives us CFO + Interest + Taxes = EBIT. Is this more of a “choose the best answer” sort of thing? Thank you!

#2

CFO and net income are most definitely _ not _ the same thing.

However – and this is the point of the question – the ratio they give is most certainly _ an _ interest coverage ratio: it’s a ratio that gives you information on the company’s ability to cover its interest payments.

It’s not _ the _ interest coverage ratio, but it is an interest coverage ratio.

#3

You are amazing as always … thank you!!!

#4

My pleasure.