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UNITED INDIA INSURANCE CO. LTD. FORM NL-33 - SOLVENCY MARGIN - KGII Solvency for the Period ended as at 30th SEPTEMBER 2011 Available Solvency Margin and Solvency Ratio (Rs. in Lacs) Item (1) Description.

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For example, a company with a solvency ratio of 1.2 is solvent, while one whose ratio is 0.9 is technically insolvent. One with a ratio of 1.5 is more solvent than one with a ratio of 1.4. A firm's solvency ratio can affect its credit rating – the lower the ratio the worse its rating can become.

Let us see in detail about the various types of solvency ratios. Debt to equity ratio. Debt to equity is one of the most used debt solvency ratios. ... Debt Ratio. Debt ratio is a financial ratio that is used in measuring a company's financial leverage. ... Proprietary Ratio or Equity Ratio. ... Interest Coverage Ratio.

Acceptable solvency ratios vary from industry to industry, but as a general rule of thumb, a solvency ratio of less than 20% or 30% is considered financially healthy. The lower a company's solvency ratio, the greater the probability that the company will default on its debt obligations.

There are four primary solvency ratios, including the interest coverage ratio, the debt-to-asset ratio, the equity ratio and the debt-to-equity ratio. Creditors and investors often use solvency ratios to gauge the sustainability of a business before lending or investing.

Solvency Ratio = (Net Profit After Tax + Depreciation) / (Short Term Liability + Long Term Liability) Solvency Ratio = (21,000 + 18,000) / (45,500 + 86,000) Solvency Ratio = 30%

Acceptable solvency ratios vary from industry to industry, but as a general rule of thumb, a solvency ratio of less than 20% or 30% is considered financially healthy. The lower a company's solvency ratio, the greater the probability that the company will default on its debt obligations.

2] Debt Ratio This is one of the more important solvency ratios. It indicates the financial leverage of the firm. A low ratio points to a more financially stable business, better for the creditors. A higher ratio points to doubts about the firms long-term financial stability.

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© Copyright 1997-2025
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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
Industries
Forms in Spanish
Localized Forms
State-specific Forms
Forms Kit
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232