Requirement 2. Explain whether each ratio improved or deteriorated over the three years. In each case, what does your answer indicate? The current ratio over the three years. This indicates that is able unable to pay its current liabilities with its current assets and that the financial position of the company has improved deteriorated over the three years. Part 4 The debt ratio has deteriorated improved slightly over the last three years; however, it is still in a bad good range. As is earning income, it will have the cashflow to pay dividends. pay its debt.