Which of the following would generally be viewed as a negative change?

Question

Quizplus · Accepted Answer

A decrease in return on common equity is generally viewed as a negative change as it indicates a decrease in the profitability of the company for its shareholders. A decrease in earnings per share could also be viewed as a negative change, but it may depend on the context of the situation. Decreases in debt-to-total-assets ratio or increases in acid test ratio are generally viewed as positive changes as they indicate improvements in the company's financial health and liquidity.

Which of the Following Would Generally Be Viewed as a Negative