If the total assets to equity ratio of a company is increasing, it is possible that:

1 answer:

6 0

When the proportion of the total assets to equities ratio increases, it is an indication that the company is less dependent on the debts of creditors.

<h3>What is assets to equity ratio?</h3>

The assets to equity ratio represents the number of assets earned by an organization with the use of debt resources. If such ratio increases, the use of debts is lowered by the company.

An increase in the assets to equity ratio also indicates that the company is operating at very low risks of losing money, acquired through debt mode.

Hence, option B holds true regarding the assets to equity ratio.

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