The cash flow adequacy ratio Measures a company's ability to generate sufficient cash flow from investing to cover debt repayments Measures a company's ability to generate sufficient cash flows from operations to cover capital expenditures and debt repayment Measures a company's ability to generate sufficient cash flows from operations to cover capital expenditures, inventory additions and dividends Measures a company's ability to generate sufficient cash flows from operations to cover capital expenditures, debt repayment and dividends