The following solvency ratios are available for Drira Corporation: 2012 2011 Debt to total assets.......................50%......................45% Times interest

Question:

The following ratios are available for Drira Corporation:
2012 2011
Debt to total assets.......................50%......................45%
Times interest earned...............10 times...................8 times
(a) Identify whether the change in each ratio is an improvement or deterioration.
(b) Did the company's overall improve or deteriorate in 2012?
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...