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.


(in thousands) Microsoft Google
Net Income $2,000 $9,000
Depreciation $1,600 $6,500
Net Income + Depreciation (A) $3,600 $15,500
Short-term Liabilities $1,200 $12,000
Long-term Liabilities $13,000 $6,000
All Liabilities (B) $14,200 $18,000
Solvency Ratio (A / B) 25% 86%