An analyst is evaluating the solvency and liquidity of Apex Manufacturing and has collected the following data (in millions of euro):

Which of the following would be the analyst’s most likely conclusion?
A. The company is becoming increasingly less solvent, as evidenced by the increase in its debt-to-equity ratio from 0.35 to 0.50 from FY3 to FY5.
B. The company is becoming less liquid, as evidenced by the increase in its debt-to-equity ratio from 0.35 to 0.50 from FY3 to FY5.
C. The company is becoming increasingly more liquid, as evidenced by the increase in its debt-to-equity ratio from 0.35 to 0.50 from FY3 to FY5.

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Total debt Total equity FY5 () 2,000 4,000 FY4 () 1,900 4,500 FY3 () 1,750 5,000