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
  • Technical Analysis Explained : The Successful Investor's Guide to Spotting Investment Trends and Turning Points

    The Intelligent Investor: The Classic Text on Value Investing

    Financial Statement Analysis: A Practitioner's Guide, 3rd Edition

    Managing Investment Portfolios: A Dynamic Process (CFA Institute Investment Series)

    3 Responses to “Solvency Ratios”

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

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

    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 [...]

    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 [...]

    Leave a Reply

    You must be logged in to post a comment.