Today we want to talk about the solvency ratios , what they are and their basic characteristics. As we all know, a financial ratio is the indicator that establishes the advantages and disadvantages of a specific scratch within pre-established measurement parameters. Among them, the one that concerns us today is the solvency ratio, which is what measures the capacity of any company to face the payment of all its debts . In other words, if an entity had to pay all its debts at a certain time, these ratios determine if that company would have assets to be able to face all those payments.
That is why we explain how to calculate the solvency ratio and, above all, we want to teach you to establish a diagnosis of this ratio based on its calculation. Through a simple formula you can calculate the index of your solvency ratios and start to establish the precise conclusions to know if your company is solvent or not with the situation of your debts.
How to calculate the solvency ratio?
To calculate this ratio , the non-current asset plus current assets must be added and divided between the sum of current and non-current liabilities. After applying this formula and establishing the calculation of the solvency ratios, the time for conclusions arrives.
The ideal result of this ratio would be equal 1.5 . If it is less than that 1.5 the company is not solvent to meet its short-term obligations. In the event that it is greater, the company may find itself in the situation of having too many current assets. The situation may arise that you have too much money in the box. That money, not being invested, can make the company lose value.
We must clarify two aspects . The first is that a company may have less than 1.5 in its ratio but it does not have to be in a situation of extreme instability. Quite simply, they may have opted for a business model by taking certain risks in some investments that do not necessarily have to lead to a delicate situation.
We must also clarify the disaggregation between the long and the short term . This is because it can be interesting that the solvency ratios of the short term are superior to those of the long term. This gives the company a maneuvering capacity in its day to day to face, with more solvency, all its obligations.
What to do in case our solvency ratios are worrisome?
There are many situations that can control our balance of expenses and income and start generating short and long-term debt. Sometimes, despite all efforts to control the accounts of our businesses, we are often surrounded by unforeseen events that make us unbalance the financial situation of our company. The solvency ratios fall and we are unable to cope with the obligations that our company has in the short term.
That is why from Rupert Birkin we present our personal loans online, which have better market conditions, both as a financial product, as a level of fees and also all the advantages of accessibility to them.
Be solvent again: the best loans
And in just 15 minutes you can have the necessary liquidity to deal with any of these unexpected and urgent payments. You can have the credit you need, the one that best suits your company’s current situation, always with a maximum of up to 800 euros . And best of all, they are easily accessible credits, away from those financial products that banks offer and for which they ask for too much documentation and demand answers to all kinds of uncomfortable questions.
With Rupert Birkin you can have cash to deal with your company’s debts in record time and just fill out a small form. The loan Without documentation or having to travel to your bank to eat long queues. All sitting from your couch and from the comfort of your home to ask for your urgent loan. You only need a device that connects to the Internet, a few minutes of your time and you can have the amount you request in 15 minutes. Rupert Birkin, at your disposal always for your credit 24 hours. Ask for your loan today!