answersLogoWhite

0


Want this question answered?

Be notified when an answer is posted

Add your answer:

Earn +20 pts
Q: What is the differace between Profitability and solvency?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What is relationship between liquidity profitability and solvency?

If liquidity inceases profitability decreases so there is inverse relationship


What are solvency and profitability?

Solvency ad profitability are financial terms. In basic terms solvency is how solvent you are. If you have more assets than liabilities then you are generally termed to be solvent however if it is the other way around you are generally termed to be insolvent, however you may have sufficient income to fund your liabilities so it is only a theoretical insolvency. Profitability is the excess of you income over your expenditure.


A short-term creditor would be most interested in?

profitability


The trade off between profitability and risk is?

trade off between ris and profitability


How do you calculate long term solvency and profitability ratio?

Long-term SolvencyDebt to Capitalization = Long-term Debt X 100 Long-term Debt + Unrestricted Net Assets Profitability Operating Margin = Operating Revenue - Operating Expenses X 100 Total Operating Revenues Long-term Solvency Debt to Capitalization = Long-term Debt X 100 Long-term Debt + Unrestricted Net Assets Profitability Operating Margin = Operating Revenue - Operating Expenses X 100 Total Operating Revenues


What is the difference between Solvency and insolvency?

The difference between solvency and insolvency is that the former describes the state of being able to pay one's debts. whereas the latter describes one's state of being unable to pay.


What solvency certificate contains?

i want an model of solvency certificate


What makes some companies more profitable than others and what are the similarities and differences between profit and profitability?

what are the similarities and differences between profit and profitability?


What is the differace between covalent and hydrogen bonds?

Covalent bonds share electrons but hydrogen bonds don't. The latter is a special incident of dipole attractions.


How are ratios classified?

Ratios are often classified using the following terms: profitability ratios (also known as operating ratios), liquidity ratios, and solvency ratios.


The positive difference between revenue and costs?

Profitability


How many types of ratio?

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.