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1.what can we conclude when a firm has a lower CFO/operating imcome ratio compared to its similar peers a. the firm likely generates a lower
1.what can we conclude when a firm has a lower CFO/operating imcome ratio compared to its similar peers
a. the firm likely generates a lower leverl of cash by paying too much interest in cash to its loan providers
b. the firm likely generates a lower level of cash by paying too much tax in cash to IRS without efficiently using the deferred tax liability tool
c. the firm likely generates a lower level of cash by paying too much cash to the suppliers of raw production materials
2. what can we concluded when a firm has a low CFO/ total debt ratio compared to its similar peers
a. the firm likely has a lower cash level to cover its interest expense obligation
b. the CFO/total debt ratio is a performance ratio, not a coverage ratio
c. the firm likely has a lower cash level to cover its debt onligations
3. what can we concluded we a firm has a low CFO: cash outfows for investing and financing activities ratio compared to its similar peers
a. the firm is operating on a great financial condition, as CFO should be lower compared to CFF and CFi
b. the firm is operating kn net cash outflow and this is understanding as long as the firm is expanding at matured stage
c. the firm is operating on net cash outflow and this is not sustainable
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