Question 6 - Debt Ratio
in
Accounting and Financial Statement Analysis
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Practical Exercise Analyzing P&G's Business Through Financial Ratios (2 of 2)
On the video that pertains to the debt ratio, the instructor stated that the lower the debt ratio the more solvent the company. That makes sense. But the quiz question (#6) says the opposite that a lower trend on the debt ratio is the reason for the worsening solvency. Please explain.
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