Question

Solvency Ratios indicate


Profitability

Activity

Credit worthiness

None of these

​

Answer 1

profitability

is the answer because solvency ratio calculate or indicate as company

Answer 2

Answer:

The solvency ratio is a key metric used to measure an enterprise’s ability to meet its debt obligations and is used often by prospective business lenders. The solvency ratio indicates whether a company’s cash flow is sufficient to meet its short-and long-term liabilities. The lower a company's solvency ratio, the greater the probability that it will default on its debt obligation