What are the indicators of the company's solvency analysis

The solvency of a company is the ability of a joint-stock company to repay its debts with its existing assets in the normal business cycle. It is usually expressed by the proportional relationship between the balance sheet and the related items in the income statement. The liabilities of enterprises are divided into current liabilities and long-term liabilities, so the solvency of enterprises is also divided into short-term solvency and long-term solvency.

What are the indicators of the company's solvency analysis?

1 working capital, that is, the part of the company's current assets that exceeds its current liabilities.

2 Current ratio refers to the proportional relationship between current assets and current liabilities.

3 quick ratio, that is, the ratio of quick assets to current liabilities that are easy to realize.

4 Cash ratio, that is, how much cash and cash equivalents are used as the guarantee of repayment for every 65,438+0 yuan current liabilities.

5 Asset-liability ratio, asset-liability ratio = total liabilities/total assets × 100%.

6 Property right ratio: Property right ratio = total liabilities/total owners' equity × 100%.

7 Earned interest multiple: reflects the degree of guarantee of profitability to debt repayment.

Solvency is the ability of an enterprise to undertake or guarantee debts due, including the ability to repay short-term debts and long-term debts. Statically speaking, it is the ability to pay off corporate debts with corporate assets; Dynamically speaking, it is the ability to repay debts with the assets of the enterprise and the income created by the business process.