The Cash Flow Adequacy Ratio

The cash flow adequacy ratio

A) Measures a company's ability to generate sufficient cash flow from investing to cover debt repayments
B) Measures a company's ability to generate sufficient cash flows from operations to cover capital expenditures and debt repayment
C) Measures a company's ability to generate sufficient cash flows from operations to cover capital expenditures, inventory additions and dividends
D) Measures a company's ability to generate sufficient cash flows from operations to cover capital expenditures, debt repayment and dividends