Solvency ratio equity, higher, company, current, liability

whaler

There are two firms: company A has a higher solvency ratio than company B. the liability to equity ratio and the current ratio of which company is higher, why?

dontknow1987

D/E is higher for the company with higher solvency. D/E is a solvency ratio....it shows company's ability to pay l/t debt. current ratio is a liquidity ratio.