The formula to calculate the Solvency Ratio is:
Solvency Ratio=(SF×100TA)
Where:
The Solvency Ratio is a key metric used to measure an enterprise’s ability to meet its debt and other obligations.
Let's assume the following values:
Using the formula:
Solvency Ratio=(50000×100100000)
Evaluating:
Solvency Ratio=50
The Solvency Ratio is 50%.
Shareholders Fund | Total Assets | Solvency Ratio |
---|---|---|
40000 | 80000 | 50.00% |
40000 | 90000 | 44.44% |
40000 | 100000 | 40.00% |
40000 | 110000 | 36.36% |
40000 | 120000 | 33.33% |
45000 | 80000 | 56.25% |
45000 | 90000 | 50.00% |
45000 | 100000 | 45.00% |
45000 | 110000 | 40.91% |
45000 | 120000 | 37.50% |
50000 | 80000 | 62.50% |
50000 | 90000 | 55.56% |
50000 | 100000 | 50.00% |
50000 | 110000 | 45.45% |
50000 | 120000 | 41.67% |
55000 | 80000 | 68.75% |
55000 | 90000 | 61.11% |
55000 | 100000 | 55.00% |
55000 | 110000 | 50.00% |
55000 | 120000 | 45.83% |
60000 | 80000 | 75.00% |
60000 | 90000 | 66.67% |
60000 | 100000 | 60.00% |
60000 | 110000 | 54.55% |
60000 | 120000 | 50.00% |