The Culleye Corporation reported the following solvency ratios: 2017 2016 Debt to total assets.....56.0%....................52.8% Interest coverage........5.1 times............3.3

Question:

The Culleye reported the following ratios:
2017 2016
Debt to total assets.....56.0%....................52.8%
Interest coverage........5.1 times............3.3 times
(a) Identify if each of the above ratios is better or worse in 2017 compared with 2016.
(b) Has Culleye's overall position improved or deteriorated in 2017? Explain.
Solvency
Solvency means the ability of a business to fulfill its non-current financial liabilities. Often you have heard that the company X went insolvent, this means that the company X is no longer able to settle its noncurrent financial... Corporation
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