The Solvency Ratio Calculator estimates a company's ability to meet its long-term obligations using its operating earnings. This version of the solvency ratio uses net income plus depreciation, which approximates available cash flow, and compares it to total liabilities.
It helps assess whether a company generates enough cash to service its debt, offering a practical view of financial stability. A higher ratio suggests stronger solvency and lower financial risk.
credits : icons made by
Book icons created by Freepik - Flaticon
Calculator icons created by Vitaly Gorbachev - Flaticon
Calculator icons created by Freepik - Flaticon
Number blocks icons created by surang - Flaticon