Which of the following would indicate an improvement in a company's financial position, holding other things constant? A) The inventory and total assets turnover ratios both decline. B) The debt ratio increases. C) The profit margin declines. D) The EBITDA coverage ratio declines. E) The current and quick ratios both increase.

Question

Quizplus · Accepted Answer

An increase in the current and quick ratios indicates improved liquidity, meaning the company is better able to meet its short-term obligations, which is generally seen as an improvement in financial position.

Which of the Following Would Indicate an improvement in a Company's