solvency ratio


Any of several formulas used to gauge a company's ability to meet its long-term obligations. It is calculated as total net worth divided by total assets.

Use solvency ratio in a sentence

You need to try and make sure that you know what the solvency ratio suggests and adapt to it quickly.

​ Was this Helpful? YES  NO 2 people found this helpful.

Determining the solvency ratio for our company was pretty hard and it required an expert to try and figure out for us.

​ Was this Helpful? YES  NO 3 people found this helpful.

My portfolio has increased with the exception of three stocks that I failed to incorporate the solvency ratio on and I have to sell at a loss.

​ Was this Helpful? YES  NO 5 people found this helpful.

Show more usage examples...

Related Terms

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
solvency solvent