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Both the assets and the liabilities of the company has declined, however, the decline in the company's liabilities have declined faster then their assets. From an investor standpoint, this is good as the company is now able to take on additional debt to help support growth. This additional debt, however, must first be viewed along side the company's Times Interest Earned to ensure the company can support the debt...
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This additional debt, however, must first be viewed along side the company's Times Interest Earned to ensure the company can support the debt. In a time of increased sales however, the company has been able to increase capital equipments and pay down debt which is really good sign for the company.
The Time-Interest-Earned ratio showed some mixed results...
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