The industry average cash debt coverage ratio is $\mathrm{.}88\%.$ Neko's $20$X$1$ debt coverage ratio was $1\mathrm{.}2\%.$

Which of the following statements is true regarding the company's financial flexibility?

The company's debt coverage ratio of $1\mathrm{.}14$ is greater than the industry average suggesting that the company is less highly

leveraged and has greater financial flexibility than the average company in its industry.

The company has $1\mathrm{.}2$ times as many debts as assets so may have difficulty paying its debts relative to other companies in the

industry.

The company has slightly more financial flexibility in $20$X$2$ when compared to $20$X$1.$

The company is more highly leveraged compared to the average company in its industry and therefore has less financial

flexibility.