Solvency refers to the company's as

Solvency refers to the company's assets to solvency liabilities. If companies can maintain the healthy development momentum offthe key lies in whether the ability to repay debts to pay in cash. This paper selects cash ratio, cash flow ratio, cash flowamount of the interest coverage ratio, debt protection ratio, the ratio of working capital to configure five indicators to measure the solvency of enterprises. Among them, the cash ratio, cash flow ratio, a measure of cash flow interest coverage of short-term solvency. Cash than therate reflects the company's solvency, the higher the ratio, the stronger the short-term solvency, but not the higher the better, the cashrate may be too high profitability of enterprises is too high and the lack of cash assets. Cash flow ratio refers to the business of livingmoving net cash flow ability to repay current liabilities. Cash flow interest coverage ratio refers to the net cash flow from operating activitiesto repay interest charges. Debt protection ratio used to measure the long-term solvency of the company, through the current period reflects the companyhow many of the enterprise operating cash current debt repayment can be obtained. Configuration working capital ratio refers to the working capitalratio and liquid assets. This ratio is greater than zero, the corporate short-term solvency is more optimistic.