Which of the following would, generally, indicate an improvement in a company's financial position, holding other things constant?
A) the total assets turnover decreases.
B) the tie declines.
C) the dso increases.
D) the ebitda coverage ratio increases.
E) the current and quick ratios both decline.

Question

Quizplus · Accepted Answer

An increase in the EBITDA coverage ratio indicates a company is better able to cover its interest expenses and is therefore in a stronger financial position. The other options (A, B, C, and E) all suggest a worsening of the company's financial position.

Which of the Following Would, Generally, Indicate an Improvement in a Company's