A creditor would most likely consider a decrease in which of the following ratios to be positive news?
A) Times interest earned
B) Current ratio
C) Debt to equity ratio
D) Inventory turnover

Question

Quizplus · Accepted Answer

A decrease in the Debt to Equity ratio indicates that a company is using less debt relative to its equity, suggesting a stronger financial position and lower risk, which creditors would view positively.

A Creditor Would Most Likely Consider a Decrease in Which