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New PowerPoint Slide – Solvency Ratios

Posted by bbw in News with Comments Off on New PowerPoint Slide – Solvency Ratios

Solvency Ratios

Debt Ratio – Calculates the portion of Total Assets relative to Total Liabilities. In our example Total Liabilities $144,780 / Total Assets $384,540 = 37.65%

Equity Ratio – Calculates the portion of Total Assets relative to Total Equity. In our example Total Equity $230,760 / Total Assets $384,540 = 62.35%

Debt-to-Equity Ratio – Calculates the balance between liabilities and equity. Total Liabilities $144,780 / Total Equity $230,760 = .627

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