Rekenbox · 2026
Solvency ratio calculator
Calculate your solvency from equity and total assets, with the KVK orientation. Or analyse every ratio.Your figures explained
Understand the number.
Equity / total assets × 100%
This share of your assets is funded by equity. A buffer helps absorb losses.
Bar length shows absolute magnitude; negative values are red and retain their minus sign. A dash means unavailable.
KVK gives 25–40% as general orientation. We show <25%, 25–40% and ≥40%; not a credit assessment. KVK ↗
Three practical next steps
- Retain part of profit as a buffer.
- Review which debts you can repay sustainably.
- Discuss additional equity for major investments.
All ratios at a glance
No credit assessment or industry benchmark. Comparable years and reliable classification are needed for useful conclusions.
- Total assets
- €110,000.00
- Equity
- €50,000.00
- Current liabilities
- €30,000.00
- Non-current liabilities and provisions
- €30,000.00
- Balance difference
- €0.00
- Net profit
- €26,000.00
- Operating working capital excluding cash
- €10,000.00
Findings and points to check
- Add the previous financial year for indirect operating and free cash flow. Other ratios use closing balances without a trend.
- A dash means unavailable: a missing comparison year or a denominator of zero or less. It is not a zero result.
All financial ratios and formulas
| Ratio | 2026 | Formula |
|---|---|---|
| Solvency: equity/assets | 45.45% | Equity / total assets × 100% |
| Equity-to-debt ratio | 83.33% | Equity / total liabilities × 100% |
| Debt ratio: liabilities/assets | 54.55% | Total liabilities / total assets × 100% |
| Current ratio | 1.67× | Current assets / current liabilities |
| Quick ratio | 1× | (Current assets − inventory) / current liabilities |
| Net working capital | €20,000.00 | Current assets − current liabilities |
| EBIT | €35,000.00 | Revenue − cost of sales − staff − other operating expenses − depreciation |
| EBITDA | €45,000.00 | EBIT + depreciation and amortisation |
| EBITDA margin | 18.75% | EBITDA / revenue × 100% |
| Gross profit margin | 58.33% | (Revenue − cost of sales) / revenue × 100% |
| Net profit margin | 10.83% | Net profit / revenue × 100% |
| Return on equity (ROE) | 52% | Net profit / average equity × 100% |
| Return on assets (ROA) | 31.82% | EBIT / average total assets × 100% |
| Interest coverage | 11.67× | EBIT / interest expense |
| Days sales outstanding (DSO) | 22.81 days | Average trade receivables / revenue × 365 |
| Days payable outstanding (DPO) | 54.75 days | Average trade payables / cost of sales × 365 |
| Days inventory outstanding (DIO) | 73 days | Average inventory / cost of sales × 365 |
| Total asset turnover | 2.18× | Revenue / average total assets |
| Cash conversion cycle | 41.06 days | DSO + DIO − DPO |
| Operating cash flow (indirect) | — | Net profit + depreciation − change in operating working capital |
| Free cash flow | — | Operating cash flow − net capital expenditure paid |
Entered balance sheet and profit and loss
| Item | 2026 |
|---|---|
| Non-current assets | €60,000.00 |
| Inventory | €20,000.00 |
| Trade receivables | €15,000.00 |
| Cash and cash equivalents | €10,000.00 |
| Other current assets | €5,000.00 |
| Equity (including profit) | €50,000.00 |
| Non-current liabilities and provisions | €30,000.00 |
| Trade payables | €15,000.00 |
| Current taxes and social contributions | €5,000.00 |
| Other current liabilities | €10,000.00 |
| Revenue excluding VAT | €240,000.00 |
| Cost of goods sold | €100,000.00 |
| Staff costs | €65,000.00 |
| Depreciation and amortisation | €10,000.00 |
| Other operating expenses (net) | €30,000.00 |
| Interest expense | €3,000.00 |
| Tax on profit | €6,000.00 |
| Capital expenditure paid less disposal proceeds | €15,000.00 |
| Borrowings included in other current liabilities | €0.00 |
| Non-operating part of other current assets | €0.00 |
Assumptions, sources and version
2026 · financial-ratios-1.0 · v2026.1
- Indicative ratios based on your own book values. No industry benchmark, credit assessment or accountant’s assurance. KVK ranges are general guidance; lender agreements and industry conventions can differ.
- A year uses 365 days. DSO, DPO and DIO use average balances for two years, otherwise closing balances. Revenue and cost of sales approximate credit sales and purchases; VAT, seasonality and cash transactions can distort collection periods.
- ROA = EBIT / average assets; ROE = net profit / average equity. A zero or negative denominator does not produce a meaningful ratio. Simplified indirect cash flow = profit + depreciation − change in operating working capital, excluding cash and specified borrowings/non-operating assets. Other non-cash items and business acquisitions/disposals are not included.
- Enter comparable full years with the same accounting policies. Negative equity and unbalanced accounts remain visible. Imported proposals are applied only after your classification review; unknown accounts are never silently omitted.
- KVK — levensvatbaarheid, liquiditeit en solvabiliteit (2026-09-06)
- KVK — werkkapitaal (2026-09-06)
- Referentie GrootboekSchema — definitieve versie RGS 3.7 (2026-09-06)
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Understand your result
How this tool works
Solvency shows what proportion of a company's assets is financed by equity. Equity can include capital contributed by owners and retained earnings. The main formula used here is equity divided by total assets, multiplied by one hundred percent. In a balanced set of accounts, total assets equal equity plus liabilities. Enter all items at the same reporting date, including equity after the current year's profit has been incorporated.
A second definition compares equity directly with liabilities. Its percentage will generally be higher than equity/assets because the denominator is smaller. A third perspective is the debt ratio: liabilities divided by total assets. When the accounts balance, equity/assets and the debt ratio add up to one hundred percent. Always identify the formula when discussing a percentage with a bank, supplier or investor. Two percentages are comparable only when their definitions match.
A suitable solvency ratio depends on the industry, business risks and composition of assets. KVK provides a general orientation of 25 to 40 percent. That range is not an automatic loan-approval threshold. A business with recurring income and few fixed assets may be assessed differently from a capital-intensive manufacturer. Recoverable asset values, subordinated loans and contractual adjustments may also be treated differently in a lender's assessment from this simple model.
The calculator retains negative equity and negative solvency rather than hiding them. A negative percentage is not necessarily a calculation error: obligations may exceed the book value of assets. If assets are absent or the denominator is zero, no usable percentage is displayed. Add the previous year to see the direction of change and check the balance-sheet difference at the same time. Retaining profits, sustainably repaying debt or raising new equity can change the ratio. Each choice also affects cash, ownership or investment capacity and therefore requires its own assessment. Download the calculation free, preserve the underlying balances and explain significant changes before using it in a financing conversation. The result is an indication, not a credit decision.
Solvency formula and reference range
Solvency = equity / total assets × 100%
Read the result alongside the composition of your balance sheet and payment agreements. The visual comparison shows current and previous values; the selected ratio’s formula remains visible.
Common questions
What is a good solvency ratio?
KVK gives 25–40% as general orientation. Industry, business risk, valuation and lender terms determine the appropriate ratio. This tool does not make a credit assessment.
How do I calculate solvency?
The main formula is equity divided by total assets, multiplied by 100%. Equity/debt uses liabilities as its denominator and therefore gives a different percentage; both are shown.
What does negative equity mean?
The book value of assets is then lower than obligations. The calculator shows negative solvency and a warning. Also check that all balances and current profit have been recorded.
Does debt repayment always improve solvency?
With unchanged positive equity, repayment from cash reduces assets and liabilities and raises equity/assets. Your cash buffer falls at the same time, so assess liquidity too.
Which details do you need?
- Company name (optional)
- Financial year
- Compare previous year
- Net profit
- Non-current assets
- Inventory
- Trade receivables
- Cash and cash equivalents
- Other current assets
- Equity (including profit)
- Non-current liabilities and provisions
- Trade payables
- Current taxes and social contributions
- Other current liabilities
- Revenue excluding VAT
- Cost of goods sold
- Staff costs
- Depreciation and amortisation
- Other operating expenses (net)
- Interest expense
- Tax on profit
- Net profit from the accounts
- Capital expenditure paid less disposal proceeds
- Borrowings included in other current liabilities
- Non-operating part of other current assets
- Previous year: non-current assets
- Previous year: inventory
- Previous year: trade receivables
- Previous year: cash and cash equivalents
- Previous year: other current assets
- Previous year: equity (including profit)
- Previous year: non-current liabilities and provisions
- Previous year: trade payables
- Previous year: current taxes and social contributions
- Previous year: other current liabilities
- Previous year: revenue excluding vat
- Previous year: cost of goods sold
- Previous year: staff costs
- Previous year: depreciation and amortisation
- Previous year: other operating expenses (net)
- Previous year: interest expense
- Previous year: tax on profit
- Previous year: net profit from the accounts
- Previous year: capital expenditure paid less disposal proceeds
- Previous year: borrowings included in other current liabilities
- Previous year: non-operating part of other current assets
Limits of this tool
- Indicative ratios based on your own book values. No industry benchmark, credit assessment or accountant’s assurance. KVK ranges are general guidance; lender agreements and industry conventions can differ.
- A year uses 365 days. DSO, DPO and DIO use average balances for two years, otherwise closing balances. Revenue and cost of sales approximate credit sales and purchases; VAT, seasonality and cash transactions can distort collection periods.
- ROA = EBIT / average assets; ROE = net profit / average equity. A zero or negative denominator does not produce a meaningful ratio. Simplified indirect cash flow = profit + depreciation − change in operating working capital, excluding cash and specified borrowings/non-operating assets. Other non-cash items and business acquisitions/disposals are not included.
- Enter comparable full years with the same accounting policies. Negative equity and unbalanced accounts remain visible. Imported proposals are applied only after your classification review; unknown accounts are never silently omitted.
Year: 2026 · Version 2026.1
Sources for this tool
- KVK — levensvatbaarheid, liquiditeit en solvabiliteit · calculation source checked 2026-09-06
- KVK — werkkapitaal · calculation source checked 2026-09-06
- Referentie GrootboekSchema — definitieve versie RGS 3.7 · calculation source checked 2026-09-06
Prepared by the Rekenbox product team at Winstwaker. The listed source references and calculation version make the method traceable. Report a content error Last updated: 2026-09-06. Rekenbox is a product by Winstwaker. The tool applies a calculation model to your inputs; a result or paid report is not a personal assessment by an adviser.