How is Leverage (Solvency) calculated?

Solvency refers to a company's ability to stay in business and operate as a going concern. Moreover it considers a company's ability to meet interest costs and debt payments as scheduled. 

The following ratios help us analyze Leverage: 

Equity in Assets (Percent)
Debt to Worth
Tangible Net Worth
Debt to Tangible Net Worth
Effective Tangible Net Worth
Debt to Effective Tangible Net Worth

These calculations are available within the CASH|Suite Insight Application to assess financial capacity and risk.


Related software:
CASH Insight
Article id: kb0000140
Knowledge type: Analytical
Published: Sun, 01/13/2008 - 02:08
Total Page Views: 318