Last year, Delta's times interest earned ratio was $1\mathrm{.}8.$ This year the ratio is $0\mathrm{.}8.$ How should this change in value be interpreted?

Multiple choice question.

Delta's is better utilizing its debt this year and is increasing the financial stability of the firm.

The decrease in the ratio to a value less than $1$ indicates the firm's debt load may have become too large for the firm.

Delta's is replacing its outstanding debt at a slower rate than in the previous year.

Delta's capital structure changed such that the firm now lies more on financial leverage