What is soliditetsgrad (solvency ratio)?

In short

The soliditetsgrad shows how much of the business's assets are financed with equity. It is calculated as equity divided by total assets times 100.

In practice

A solvency ratio of 30-40% or more is normally considered solid, though it varies by industry. The higher the solvency, the better the business withstands losses — and the easier it usually is to borrow.

Related terms

• Egenkapital (equity)
• Nøgletal (financial ratios)
• Balance (balance sheet)
• See every term in the dictionary

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