1. Debt scale
By the end of 2020, Gree Electric's total liabilities were 89.738 billion yuan, accounting for 52.2 1% of its total assets.
2. Short-term solvency
Gree Electric's current ratio is 1. 1, which is higher than the industry average, indicating its strong short-term solvency. In addition, the company also has a high quick ratio of 0.78, which further proves its good short-term solvency.
3. Long-term solvency
Gree Electric has outstanding long-term solvency. In its capital structure, shareholders' equity accounts for 47.79%, which is lower than the industry average, but its total assets turnover rate is high, indicating that the company can make better use of assets to create income. In addition, the company also has a high interest guarantee multiple, that is, 465,438+0.06 times, indicating that its profit level can easily cover the interest expenses generated by liabilities.
4. Comprehensive solvency
On the whole, Gree Electric's solvency is stable. The high turnover rate of total assets can drive the profit level. At the same time, the company has a high cash flow and has the ability to maintain the stable operation of the company. To sum up, Gree Electric has strong solvency and can meet relevant debt repayment obligations.