Before you jump into any investment, it's important to determine if a company can maintain its liquidity and remain solvent over time. Liquidity and solvency ratios work together, but they shouldn't ...

Business owners tend to think their No. 1 priority is to make a profit. That end, however, can lead to using some particularly short term-minded means, such as using large amounts of debt to grow ...

The current ratio is calculated by dividing a company’s current assets by its current liabilities. Ratios of 1 or higher indicate short-term solvency.

If you’re a business owner looking for a loan, your lender will be looking for your solvency ratio. Of course, if you have a startup and are new to running a business, you may not know what a solvency ...

Learn how risk-weighted assets are used to determine solvency ratio requirements under the Basel III accord, and see how capital requirements have increased.

Discover how the yield on earning assets measures a financial institution's efficiency in generating income from its assets and its impact on financial health.