Solvency Ratio Excel Template

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An ltd made a profit for this financial year end after tax is 10000. The company having an asset of
Rs 10000. Depreciation rate applicable as per Company law is 10% (Straight line method). long term and
short term liability are 50000. From the above information calculate the solvency ratio.

Net Profit After Tax 10000

Depreciation (10%) 1000
Total Liability 50000

Solvency Ratio is calculated using the formula given below

Solvency Ratio = (Net Profit After Tax + Depreciation) / Total Liability

Solvency Ratio 22%

Dmart have the following information available for the financial year-end. So,
calculate the solvency ratio from below information. The depreciation rate is 10 %,
use the straight-line method for calculating depreciation. And tthe ax rate is 30%.

Total Sales 160000

Cost of Goods Sold 90000
Operating Expences 40000
Debtor 21000
Bill Receivable 9000
Total Asset 180000
Short Term Debt 15000
Account Payable 5000
Loan 20000
Accrued Liabilities 2000
Creditor 10000
Other Current Liabilities 6000
Interest Payable 4000
Long Term Debt 18000
Long Term Bond 39000
Taxable Payable 3500
Other Long Term Liabilities 9000

Net Profit Before Tax is calculated as:

Net Profit Before Tax 30000

Tax Rate is calculated as:

Tax Rate (30%) 9000

Net Profit After Tax is calculated as:

Net Profit After Tax 21000

Long Term Liabilities is calculated as:

Long Term Liabilities 86000

Short Term Liabilities is calculated as:

Short Term Liabilities 45500

Depreciation is calculated as:
Depreciation (10%) 18000

Solvency Ratio is calculated using the formula given below

Solvency Ratio = (Net Profit After Tax + Depreciation) / (Short Term Liability + Long Term Liability)

Solvency Ratio 30%

Tata sponge has the following information, the tax rate is 35% and depreciation
rate is 10%. Calculate the solvency ratio for the below information.

Payable 5000
Short Term Debt 14000
Creditor 16500
Total Asset 50000
Long Term Debt 20000
Bonds 15000
Accured Liabilities 12000
Other Current Liabilities 7000
Loan 8000
Total Sales 120000
Operating Expences 50000
Cost of Goods Sold 20000

Net Profit Before Tax is calculated as:

Net Profit Before Tax 50000

Tax Rate is calculated as:

Tax Rate (35%) 17500

Net Profit After Tax is calculated as:

Net Profit After Tax 32500

Short Term Liabilities is calculated as:

Short Term Liabilities 54500

Long Term Liabilities is calculated as:

Long Term Liabilities 43000

Depreciation is calculated as:
Depreciation (10%) 5000

Solvency Ratio is calculated using the formula given below

Solvency Ratio = (Net Profit After Tax + Depreciation) / (Short Term Liability + Long Term Liability)

Solvency Ratio 38%