How it Works
(Net Income + Depreciation) / Total Liabilities.
What is Solvency Ratio Calculator?
Indicates whether a company's cash flow is sufficient to meet its long-term liabilities.
Step-by-Step Guide
- Income – Net + Non-cash.
- Debt – All liabilities.
- Calc – Percentage.
Example
Input: 60k Inc, 200k Debt
Result: 30%
FAQ
Diff from liquidity?
Solvency is long-term; liquidity is short-term.
Conclusion
A ratio above 20% suggests financial strength.