Which financial ratios are better to be high and low? (1 Viewer)

[cardinalsfan70]

This is incorrect.
When solvency increases it just means 'A company's ability to meet its financial obligations on time'. So if it increases it is actually better for the company.

true. although that being said, here higher solvency is equal to a lower number. so solvency increasing is good but this really equates to the number itself decreasing.