Operating cash flows, post tax and post interests?

CFA Level II
#1

Are operating cash flows a post interest and post tax metric?

#2

Operating Cah flows are post TAX but not Post Interest as Interest Expense is an outflow from Financing activities not Operating .

It is EBIT* (I-TAX Rate)

#3

Isn’t Interest expense an Operating outflow under US GAAP and possibly also under IFRS?

#4

I’m confused now.

Operating Cash Flow = EBIT (1 - Tax Rate). Interest is an expense that’s reported in the Cash flow from operations.

Why isn’t it (EBIT - Interest)* (1 - Tax Rate)?

Thoughts???

#5

Up

Could someone please clarify that?

#6

Operating CF Before Interest and Tax = Operating CF + Cash interest Paid + Cash taxes paid