The short-term solvency position of company indicates the ability of the company to meet its short-term abilities like payment to creditors, payment of wages & salaries etc.
Short term solvency position is studied by taking into consideration current ratio accompanied by liquid ratio.
Long-term solvency position of a company indicates the ability to meet its long-term liabilities like redemption of debentures, payment of long term loans etc.
Long-term solvency position is indicated by the proprietary ratio & debt equity ratio.
As a shareholder/debenture holder one will be concerned about the long-term solvency position of the company this is because the shareholders/debenture holders invest their money in long-term funds.
Latest posts by BMS Team (see all)
- Meterdown Annual Festival is back with its 7th edition – Starts today! - January 16, 2020
- Tybms sem 6 results 2019 declared on 19th June 2019 - June 19, 2019
- TYBMS Sem 6 Results 2019 Update from BMS khabri! - June 15, 2019