For each of the following solvency ratios, indicate whether the change would be viewed as an improvement

Question:

For each of the following ratios, indicate whether the change would be viewed as an improvement or deterioration:
(a) A decrease in debt to total assets
(b) A decrease in interest coverage
(c) An increase in A decrease in debt to total assets combined with an increase in interest coverage?
Solvency
Solvency 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... Free Cash Flow
Free cash flow (FCF) represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. Unlike earnings or net income, free cash flow is a measure of profitability that excludes the...