Solvency Ratios include :

(A) Proprietory Ratio
(B) Interest Coverage Ratio
(C) Fixed Assets Turnover
(D) Debt to Capital Employed Ratio
(E) Operating Ratio

Choose the correct answer from the options given below :

(A), (B) and (D) Only

The correct answer is Option (4) - (A), (B) and (D) Only.

Solvency ratios focus on assessing a business's capability to fulfill its long-term debt obligations rather than short-term ones. Solvency ratios are calculated to determine the ability of the business to service its debt in the long run. Examples of solvency ratios include the debt equity ratio, total assets to debt ratio, proprietary ratio, and interest coverage ratio.

* Fixed Assets Turnover- It is an activity ratio.

* Operating Ratio- It is an profitability ratio.