and so on..............................................................

For each of the following solvency ratios, indicate whether the change would be viewed as an improvement or deterioration: (a) A decrease in debt to equity (b) A decrease in interest coverage (c) An increase in cash flows to total liabilities (d) A decrease in net debt as a percentage of total capitalization combined with an increase in interest coverage. Improvement. Deterioration (a) (b) (c) (d) A decrease in debt to equity A decrease in interest coverage An increase in cash flows to total liabilities A decrease in net debt as a percentage of total capitalization combined with an increase in interest coverage. Deterioration Improvement