2b: Using the ratios below, appraise the trend (2007-09) of Flash's leverage. Cite specific ratios to justify your analysis.

FINANCIAL RATIOS
PERIOD	-2	-1	0
YEAR	2007	2008	2009
Liquidity Ratios
Current ratio	2.1	1.9	1.9
Quick ratio	1.3	1.1	1.2
Days sales in receivables	52.0	58.0	60.0
Days cost of sales in inventory	56.0	59.1	58.0
Days cost of sales in payables	18.0	22.8	19.8
Leverage Ratios
Long-term debt to total capital	#VALUE!	#VALUE!	#VALUE!
Long-term debt to equity	#VALUE!	#VALUE!	#VALUE!
Times interest earned	8.9	1.4	6.7
Full burden coverage	0.9	0.6	0.8