Halverson's Times Interest Earned Ratio Was 2

Multiple Choice

Halverson's times interest earned ratio was 2.98 in 2010,2.79 in 2009,and 2.31 in 2008.Which of the following statements about their ratio is possibly correct?

A) Their increasing ratio indicates decreasing levels of debt on which interest is incurred.
B) Their increasing ratio indicates their strategy of pursuing growth by investment in other companies which has increased debt but their profits have not yet increased from those investments.
C) The increasing ratio implies increased long-term debt financing.
D) Their increasing ratio would be considered by creditors to be an indicator of higher risk.