Enter the net income, depreciation, and total liabilities into the calculator to determine the solvency ratio of the business.

- Debt to Income Ratio Calculator
- Debt to Equity Ratio Calculator
- Debt Service Coverage Ratio (DSCR) Calculator

## Solvency Ratio Formula

The following equation can be used to calculate the solvency ratio.

SR = (NI + D) / L

- Where SR is the solvency ratio
- NI is the net income ($)
- D is the depreciation ($)
- L is the total liabilities ($)

## FAQ

**What is a solvency ratio?**

The solvency ratio is a measure of how solvent a company is. Solvency is the ability of a companies ability to pay it’s debt. The higher the ratio, the better the solvency of the company and the more income to liabilities to company has.

**How is solvency ratio calculated?**

The ratio is calculated using the sum of the net income and depreciation of assets and dividing that value by the total liabilities. The higher the ratio the better the standing of the company.

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