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Solvency Ratios

Solvency ratios help investors assess a company’s ability to meet its long-term obligations. They also tell investors how the company has been financed (debt or equity) and whether that is changing over time.

The major solvency ratios are:

For more information, see all articles on: Financial Statement Analysis, Fundamental Analysis, Investing in Stocks, Ratio Analysis, Security Selection

See also:
  • Ratio Analysis
  • Cash Flow Ratios
  • Coverage Ratios
  • Analyzing Asset Retirement Obligations
  • Debt to Equity
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    This entry was posted on Tuesday, January 30th, 2007 at 11:53 am and is filed under Financial Statement Analysis, Fundamental Analysis, Investing in Stocks, Ratio Analysis, Security Selection. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

    3 Responses to “Solvency Ratios”

    1. Debt to Assets - Financial Education - Everything You Need To Know About Finance Says:

      [...]     « Debt to Equity Solvency Ratios [...]

      February 8th, 2007 at 1:13 pm

    2. Debt to Equity - Financial Education - Everything You Need To Know About Finance Says:

      [...] to equity is a solvency ratio that, like debt to assets, is a way to determine the relative contributions to total funding [...]

      February 8th, 2007 at 1:15 pm

    3. Coverage Ratios - Financial Education - Everything You Need To Know About Finance Says:

      [...] a company has sufficient resources to meet its contractual obligations. As such, they are a form of solvency ratio. Like the other solvency ratios, there are various ways to measure this [...]

      February 8th, 2007 at 1:16 pm

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