What are the solvency analysis methods?

Solvency analysis (long-term and short-term):

1) Asset-liability ratio (debt ratio) = total liabilities of enterprises/total assets of enterprises.

Investigating the long-term debt trend of enterprises is a barometer reflecting the long-term solvency.

2) owner's equity debt ratio (debt equity ratio) = total liabilities/owner's equity

Reflect the proportion of funds provided by creditors and owners, and reflect whether the operating funds are obtained by borrowing.

3) The ratio of cash inflow to total liabilities = sales income (or working capital)/total liabilities.

It is combined with current ratio and quick ratio index to comprehensively judge the solvency of enterprises.

4) Property right ratio = total liabilities/owner's equity

Review the solvency of the enterprise's own capital.

5) Current ratio = total current assets/total current liabilities

Investigate the liquidity of enterprise assets and show the short-term solvency of enterprises.

6) Quick ratio (acid test ratio) = total quick assets/total current liabilities.

An important index to judge the short-term solvency of enterprises

7) enterprise blood pressure = (total current liabilities-total quick assets)/total current liabilities

It can be seen how big the gap is for enterprises to pay current liabilities.

8) Monetary fund ratio = total monetary fund/total current liabilities

Reflect the proportion of monetary funds in current liabilities. The greater the ratio, the stronger the solvency.

9) Basic defense period = quick assets/fixed expenses for daily operation.

Reflect the number of days that existing quick assets can pay without any income.

10) ratio of working capital to current liabilities = current liabilities/(current assets-current liabilities)

Investigate the situation that the enterprise's working capital undertakes the enterprise debt in a certain period of time.

1 1) Spot payment ratio = (cash+bank deposit)/(current liabilities-accounts received in advance-accrued expenses-forward loans)

Reflect the ability of enterprises to pay current liabilities with monetary funds in a certain period of time.

12) tangible net debt ratio = total liabilities/(owner's equity-intangible assets)

Examine the solvency of the tangible net assets of the enterprise.

13) Ratio of fixed assets to owners' equity = net fixed assets/owners' equity.

To investigate the situation that the funds for the purchase and construction of fixed assets by enterprises are provided by the owners.

14) Earned interest multiple = pre-tax interest/paid interest.

Examine the enterprise's ability to pay debt interest at a certain profit level, and reflect the guaranteed multiple of interest.