Why does operating income not give a complete picture of a firms ability to service its debt?

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Why does operating income not give a complete picture of a firm’s ability to service its debt?

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Foundations Of Finance

ISBN: 9781292155135

9th Global Edition

Authors: Arthur J. Keown, John D. Martin, J. William Petty

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Question Posted: Feb 21, 2024 05:00 AM

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Why does operating income not give a complete picture of a firms ability to service its debt?

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Operating income also known as operating profit or operating earnings represents the profit a company generates from its core business operations excl...View the full answer

Foundations Of Finance

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