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

Question

Quizplus · Accepted Answer

An increase in current and quick ratios indicates an improvement in a company's liquidity position, which is generally considered positive for its financial health. The other options - increasing debt ratio, declining profit margin, and declining EBITDA coverage ratio - would all indicate a deteriorating financial position.

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