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Basic Question 3 of 3

Which of the following ratios most likely indicates that a company has earnings of high quality?

A. Operating cash flow/Net income > 1.
B. Investing cash flow/Net income > 1.
C. Financing cash flow/Net income > 1.

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I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu

Edward Liu

Learning Outcome Statements

calculate and interpret free cash flow to the firm, free cash flow to equity, and performance and coverage cash flow ratios

CFA® 2024 Level I Curriculum, Volume 2, Module 5.