Degree of solvency: Solvency ratio
ID:CVDSSR
Video Overview
In previous tutorials we discussed how a business can use financial ratios to help to analyse the profit and loss calculated on the income statement for the year, as well as to analyse aspects of its financial structure reported on the balance sheet. We looked at profitability ratios and liquidity ratios. In this tutorial we will look at a ratio which helps to analyse the degree of solvency in a business. It is called the solvency ratio.
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