If debt equity ratio increased by .7, and interest coverage increased by .7,

are they more or less solvent? In the first year, debt to equity ratio was 1.8. In the next year, it was 2.5. The interest coverage (number of times interest earned) in the first year was 2.1. In the second year, interest coverage was 2.8. Is this company more or less solvent in the second year?
 
Back
Top