Solvency ratios

Solvency ratios,

Definition of Solvency ratios:

  1. Mathematical comparisons of different components of an entitys financial statements to determine its solvency. Common solvency ratios are (1) Current liabilities to inventory ratio, (2) Current liabilities to net worth ratio, (3) Current ratio, (4) Fixed assets to net worth ratio, (5) Quick ratio, and (6) Total liabilities to net worth Ratio.

Meaning of Solvency ratios & Solvency ratios Definition