Bombardier Inc. reported the following selected solvency ratios: _________________________________________ 2012 ________________ 2011 Debt to total assets .................................94.7%
Question:
Bombardier Inc. reported the following selected solvency ratios:
_________________________________________ 2012 ________________ 2011
Debt to total assets .................................94.7% ........................... 97.2%
Cash total debt coverage ...................... 0.1 times ................0.0 times
Based on the above, has Bombardier's solvency improved or deteriorated? Explain.
SolvencySolvency means the ability of a business to fulfill its non-current financial liabilities. Often you have heard that the company X went insolvent, this means that the company X is no longer able to settle its noncurrent financial...
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A decrease in the debt to total asset ratio shows an improvement ...View the full answer
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Related Book For 
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118644942
6th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
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