If you are examining the solvency of Rami Manufacturing and has collected the following data (in millions of JD):

Which of the following would be the most appropriate conclusion for you?

Item	2018	2019	2020
Total debt	1750	1900	2000
Total equity	5000	4500	4000
debt/ equity	.35	.42	.50

non is correct

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 2018 to 2020.

The company is becoming less liquid, as evidenced by the increase in its debt - to - equity ratio from 0.35 to 0.50 from 2018 to 2020.

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 2018 to 2020