The formula to calculate the Solvency Ratio is:
\[ \text{Solvency Ratio} = \left( \frac{\text{SF} \times 100}{\text{TA}} \right) \]
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:
\[ \text{Solvency Ratio} = \left( \frac{50000 \times 100}{100000} \right) \]
Evaluating:
\[ \text{Solvency Ratio} = 50 \]
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% |