A cash flow adequacy ratio, when measured over the last several years, of less than one:

A cash flow adequacy ratio, when measured over the last several years, of less than one: 



A. Indicates that a company's net income is too low relative to its sales level
B. Indicates that a company should decrease its dividend payout ratio
C. Indicates that a company needs to pay down its debt to decrease interest costs
D. Indicates that a company's internally generated cash flows have not been sufficient to cover dividend payments and support past growth levels





Answer: D


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