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Current ratio
Quick ratio (Acid Test Ratio)
debt to assets and debt to equity
there are two ratios to check the solvency
1) Current ratio = Current Assets/ Current Liabilites
2) Quick ratio=(Current Assets- Inventory)/ Current Liabilites
Current ratio=current assets / Current liabilities
Quick ratio =( Current assets - Inventory) / Current liabilities
Acid test ratio/quick ratio
Curresnt ratio
In my opinion it is current asset and current liability
Current ratio
and Working capital
Solvency ratios display a company's ability to meet his long term debts .
Net profit after tax but before depreciation/ total Short and long term liability
In general ratio above20% considered healty for a company.
debt turn over ration, solvency ratio. acid test ratio, current ration, gross profit ratio,capital turn over ratio
The two Ratios are
1)Operational Self Sufficiency (OSS)
2)Financial Self Sufficiency (FSS)
The first one is ratio of income to all the cash costs
While in the second one, all the subsidies are adjusted. Especially, the cost of inflation on company's own capital is also included in the expense.
the two ratios which used , first ratios know anaylziz the problem reasons and slove it step by step , the second ratios add plan to avoid problem like that
