The ratio that measures solvency by relating cash flows from operating activities to total liabilities is the:

Question

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The cash flow adequacy ratio measures the solvency of a company by determining its ability to meet its financial obligations over the long term. It is calculated by dividing cash flows from operating activities by total liabilities. This ratio provides insight into a company's ability to generate cash flows and pay off its debts.

The Ratio That Measures Solvency by Relating Cash Flows from Operating