An analyst is comparing the solvency of a company over the past two years using the information below: | Year 2 | ¥ Millions | |----------------|------------| | Total debt | 2,300 | | Total shareholders' equity | 17,000 | | Total assets | 20,000 | | Net income | 375 | | Interest payments/interest expense | 200 | | Taxes paid | 125 | **Ratios in Year 1** | Debt to capital | 12.7% | | Interest coverage | 2.9 | The best conclusion the analyst can make about Year 2 is that compared with Year 1, the company's solvency has: | Chartered Financial Analyst Level 1 Quiz - LeetQuiz