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Solvency Ratio Formula

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Solvency Ratio is a key metric used to measure an enterprise’s ability to meet its debt and other obligations. Check FAQs

SR = \frac{SF \cdot 100}{TA}

SR - Solvency Ratio?SF - Shareholders Fund?TA - Total Assets?

Solvency Ratio Example

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Here is how the Solvency Ratio equation looks like with Values.

Here is how the Solvency Ratio equation looks like with Units.

Here is how the Solvency Ratio equation looks like.

50 = \frac{50000 \cdot 100}{100000}

50 = \frac{50000 \cdot 100}{100000}

50 = \frac{50000 \cdot 100}{100000}

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Solvency Ratio Solution

Follow our step by step solution on how to calculate Solvency Ratio?

FIRST Step Consider the formula

SR = \frac{SF \cdot 100}{TA}

Next Step Substitute values of Variables

∴

SR = \frac{50000 \cdot 100}{100000}

Next Step Prepare to Evaluate

∴

SR = \frac{50000 \cdot 100}{100000}

LAST Step Evaluate

∴

SR = 50

Solvency Ratio Formula Elements

Variables

Solvency Ratio

Solvency Ratio is a key metric used to measure an enterprise’s ability to meet its debt and other obligations.

Symbol: SR

Measurement: NAUnit: Unitless

Note: Value can be positive or negative.

Formulas to find Solvency Ratio

Shareholders Fund

Shareholders' funds are the balance sheet value of the shareholders' interest in a company.

Symbol: SF

Measurement: NAUnit: Unitless

Note: Value can be positive or negative.

Formulas to find Shareholders Fund

Total Assets

Total Assets are the final amount of all gross investments, cash and equivalents, receivables, and other assets as they are presented on the balance sheet.

Symbol: TA

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Total Assets

Other formulas in Important Formulas of Business category

Go Break-Even Point

BEP = \frac{FC}{CM}

Go Return on Capital Employed

ROCE = (\frac{EBIT}{TA - CL}) \cdot 100

Go Economic Order Quantity

EOQ = (\frac{2 \cdot Cf \cdot Demand}{C h}) \cdot (\frac{1}{2})

Go Percentage off

% Off = 1 - (\frac{SP}{OP})

How to Evaluate Solvency Ratio?

Solvency Ratio evaluator uses Solvency Ratio = (Shareholders Fund*100)/Total Assets to evaluate the Solvency Ratio, Solvency Ratio is a key metric used to measure an enterprise’s ability to meet its debt and other obligations. Solvency Ratio is denoted by SR symbol.

How to evaluate Solvency Ratio using this online evaluator? To use this online evaluator for Solvency Ratio, enter Shareholders Fund (SF) & Total Assets (TA) and hit the calculate button.

FAQs on Solvency Ratio

What is the formula to find Solvency Ratio?

The formula of Solvency Ratio is expressed as Solvency Ratio = (Shareholders Fund*100)/Total Assets. Here is an example- 50 = (50000*100)/100000.

How to calculate Solvency Ratio?

With Shareholders Fund (SF) & Total Assets (TA) we can find Solvency Ratio using the formula - Solvency Ratio = (Shareholders Fund*100)/Total Assets.

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Solvency Ratio Formula

Solvency Ratio Example

Solvency Ratio Solution

Solvency Ratio Formula Elements

Other formulas in Important Formulas of Business category

How to Evaluate Solvency Ratio?

FAQs on Solvency Ratio

Variable Name