Solvency Ratios
The solvency ratio is used to measure a company's ability to meet its long-term obligations. It helps determine the financial health and stability of a business by evaluating its ability to repay debt.

Debt Equity Ratio
The debt equity ratio is a solvency ratio that indicates the proportion of equity and debt used by a company to finance its assets. It is calculated by dividing total debt by total equity. A lower debt equity ratio is generally considered favorable as it indicates that a company relies less on debt to finance its operations.

Proprietary Ratio
The proprietary ratio is a solvency ratio that shows the proportion of total assets financed by the owner's equity. It is calculated by dividing shareholders' funds by total assets. A higher proprietary ratio indicates a lower financial risk as the company has more equity to cover its debts.

Quick Ratio
The quick ratio, also known as the acid-test ratio, is a liquidity ratio that measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated by subtracting inventory from current assets and dividing the result by current liabilities. While the quick ratio assesses short-term liquidity, it is not a solvency ratio.

Total Assets to Debt Ratio
The total assets to debt ratio is a solvency ratio that measures the total assets available to cover total debt. It is calculated by dividing total assets by total debt. A higher ratio indicates a company's ability to cover its debt obligations with its assets.