1] The Credit Process & Analysis Fundamentals - Financial Ratios Understanding how debt affects a companys key financial ratios is imperative for credit professionals. From the perspective of a lender, which of the following statements are NOT true about a borrowers financial ratios?

Choose the correct options

a] A higher debt-to-equity ratio is better than a lower debt-to-equity ratio

b] A higher debt-service coverage ratio is better than a lower debt-service coverage ratio

c] A higher fixed charge coverage ratio is better than a lower fixed charge coverage ratio

d] A higher current ratio is better than a lower current ratio