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KRJ Enterprises reported a steady debt ratio over the past two years and a significant decrease in its interest coverage ratio from 8.3 to 3.9.

KRJ Enterprises reported a steady debt ratio over the past two years and a significant decrease in its interest coverage ratio from 8.3 to 3.9. What is the most likely conclusion an analyst would make about the company's solvency or creditworthiness?

With a steady debt ratio and a decreasing interest coverage ratio, the company appears to be better able to meet its debt obligations and would likely be considered more creditworthy.

Given the mixed signals of a steady debt ratio with a falling interest coverage ratio, an analyst would likely need to carefully examine many other ratios before making any initial conclusions about the company's creditworthiness.

Debt ratios and coverage ratios have very little to do with assessing a company's solvency or creditworthiness so one could not make any conclusions about the company's situation.

With a steady debt ratio and a decreasing interest coverage ratio, the company appears to be less able to meet its debt obligations and would likely be considered less creditworthy.

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