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

Question

Quizplus · Accepted Answer

An increase in the EBITDA coverage ratio generally indicates an improvement in a company's financial position as it suggests the company has a better ability to cover its interest expenses with its earnings before interest, taxes, depreciation, and amortization.

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