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which of the following would, generally, indicate an improvement in a company's financial position, holding other things constant? group of answer choices the dso increases. the current and quick ratios both declines. the tie declines. the total assets turnover decreases. the ebitda coverage ratio increases.

Respuesta :

 The EBITDA coverage ratio increases would generally indicate an improvement in a company's financial position, holding other things constant.

The EBITDA-to-interest coverage ratio is a financial metric that is used to determine whether a firm is at least financially stable enough to cover its interest costs out of pre-tax revenues. The amount of profits before interest, taxes, depreciation, and amortisation (EBITDA) that can be used for this purpose is specifically examined.EBITDA coverage is another name for the EBITDA-to-interest coverage ratio. The interest coverage ratio employs earnings before income and taxes (EBIT) rather than the more inclusive EBITDA, which is the fundamental distinction between EBITDA coverage and the latter.To determine how easily a company can pay the interest on its outstanding debt, analysts use the EBITDA-to-interest coverage ratio, or EBITDA coverage.

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