Identify the ratio that is not computed for evaluating the solvency of the business.

Operating Ratio

The correct answer is option 3- Operating Ratio.

Operating Ratio is a profitability ratio.

Operating Ratio is computed to analyze cost of operation in relation to revenue from operations.

Solvency ratios are calculated by the company to determine the ability of the company to service its debt in the long run instead of in the short run. It include debt-equity ratio, total assets-to-debt ratio, proprietary ratio and interest coverage ratio.