The term 'solvency' means the ability to meet maturing obligations as they come due

Debt to total assets ratio

The Long-Term Solvency Ratio is developed from the statement of financial position (or balance sheet) but uses this formula: (Lawrence L Martin, 2001) Financial Management for Human Services administrators states:

Total assets divided by Total liabilities = Long-term solvency ration

The long-term solvency ratio should be at least 1.0 as a rule, but the higher the better

1. Ratios for management

a. Operating ratio

b. Debtors turnover ration

c. Stock turnover ratio

d. Solvency ratio

e. Return on capital

2. Ratios for creditors

a. Current ratio

b. Solvency ratio

c. Fixed asset ratio

d. Creditors turnover ratio

3. Ratios for share holders

a. Yield ratio

b. Proprietary ratio

c. Dividend rate

d. Capital gearing

e. Return on capital fund.

Generally, there are 4 types of finance ratios, (if thats what you want).

(A) LIQUIDITY RATIO

(B) LONG TERM SOLVENCY AND STABILITY RATIO

(C) PROFITABILITY & EFFICENCY RATIOS

(D) INVESTORS OR STOCK MARKET RATIOS.