Operating Cash Flow vs Net Income?

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nnavigator

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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!
 
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.
 
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