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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 used your notes and passed ... highly recommended!
Lauren

Lauren

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® 2025 Level I Curriculum, Volume 2, Module 5.