Solvency Ratio Solution

STEP 0: Pre-Calculation Summary
Formula Used
Solvency Ratio = (Shareholders Fund*100)/Total Assets
SR = (SF*100)/TA
This formula uses 3 Variables
Variables Used
Solvency Ratio - Solvency Ratio is a key metric used to measure an enterprise’s ability to meet its debt and other obligations.
Shareholders Fund - Shareholders' funds are the balance sheet value of the shareholders' interest in a company.
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.
STEP 1: Convert Input(s) to Base Unit
Shareholders Fund: 50000 --> No Conversion Required
Total Assets: 100000 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
SR = (SF*100)/TA --> (50000*100)/100000
Evaluating ... ...
SR = 50
STEP 3: Convert Result to Output's Unit
50 --> No Conversion Required
FINAL ANSWER
50 <-- Solvency Ratio
(Calculation completed in 00.004 seconds)

Credits

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Bhilai Institute of Technology (BIT), Raipur
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Important Formulas of Business Calculators

Economic Order Quantity
​ Go Economic Order Quantity = ((2*Fixed cost per order*Demand in Units Per Year)/Carrying cost per unit per year)*(1/2)
Return on Capital Employed
​ Go Return on capital employed = (Earnings Before Interest and Taxes/(Total Assets-Current Liabilities))*100
Break-Even Point
​ Go Break Even Point = Fixed Costs/Contribution Margin per Unit
Solvency Ratio
​ Go Solvency Ratio = (Shareholders Fund*100)/Total Assets

Solvency Ratio Formula

Solvency Ratio = (Shareholders Fund*100)/Total Assets
SR = (SF*100)/TA

How to Calculate Solvency Ratio?

Solvency Ratio calculator uses Solvency Ratio = (Shareholders Fund*100)/Total Assets to calculate 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 calculate Solvency Ratio using this online calculator? To use this online calculator for Solvency Ratio, enter Shareholders Fund (SF) & Total Assets (TA) and hit the calculate button. Here is how the Solvency Ratio calculation can be explained with given input values -> 50 = (50000*100)/100000.

FAQ

What is Solvency Ratio?
Solvency Ratio is a key metric used to measure an enterprise’s ability to meet its debt and other obligations and is represented as SR = (SF*100)/TA or Solvency Ratio = (Shareholders Fund*100)/Total Assets. Shareholders' funds are the balance sheet value of the shareholders' interest in a company & 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.
How to calculate Solvency Ratio?
Solvency Ratio is a key metric used to measure an enterprise’s ability to meet its debt and other obligations is calculated using Solvency Ratio = (Shareholders Fund*100)/Total Assets. To calculate Solvency Ratio, you need Shareholders Fund (SF) & Total Assets (TA). With our tool, you need to enter the respective value for Shareholders Fund & Total Assets and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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