Leverage Ratios or Solvency Ratio Calculation
Leverage Ratios Calculator
An online Solvency Ratio calculator to assess the financial health of your business.
Solvency Ratio Formula
Solvency Ratio = (Net Income + Depreciation) / (All Liabilities)
Net income: This is the company profit after tax.
Depreciation: This is the decrease in value of the company assets over time.
All liabilities: All long term plus , all short-term debts.
|Net Income + Depreciation (A)||$3,600||$15,500|
|All Liabilities (B)||$14,200||$18,000|
|Solvency Ratio (A / B)||25%||86%|