RAFIDAH SHALEH
461 10 041
SOLVENCY ANALYSIS
DEBT TO-EQUITY RATIO
DEBT TO-EQUITY RATIO
A. What is Solvency Analysis?
Analysis
of solvency is an analysis of the company's ability to meet all its
obligations, both short-term liabilities and long term liabilities.
B.
Solvency
Analysis
C.
Solvency
Analysis Formula
D.
Debt
to-equity ratio
On this policy, management can sell
assets, especially long-term assets are not productive, then the sale of these
assets are used to reduce or buy shares that circulating . The Formula for this
ratio is :
E.
The
Example
F. Conclusion
Based the Calculation, in 2009, the
composition of debt and equity is 1.99. This shows that every Rp 1.00 equity is
equal with Rp 1.99 Debt . So when the company went into liquidation, there is
still excess equity over debt that must be covered.
Results of these calculations
indicate that in 2008, the company was likely not solvable because debt
financing is greater than equity financing
