For which of the following ratios would a decrease in the ratio normally imply an improvement in the company's performance?
A)Current ratio
B)Profitability ratio
C)Gross margin percentage
D)Debt-to-equity ratio

Question

Quizplus · Accepted Answer

A decrease in the debt-to-equity ratio would mean that the company has reduced its debt relative to its equity, which is generally seen as a positive sign as it reduces the company's financial risk and increases its ability to pay off its debts.

For Which of the Following Ratios Would a Decrease in the Ratio