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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: