Solvency is the evaluation of liquidity and creditworthiness of the company, and in the broader sense a comprehensive evaluation of the company given based on the review of the annual financial statement and the current situation of the company. In this sense, solvency rating refers to the evaluation of economic occurrences in the company, based on which company may be observed. In practice, solvency rating is used for application for loans with business banks based on this evaluation and the evaluation of creditworthiness.
Based on data analysis of annual financial statement and analysis of the situation of the company a company may be classified into one of the solvency groups: the upper group includes companies where data on balance or the situation to not point to any danger for the company; the middle includes companies which, based on data from balances or the situation may point to possible danger for the company, while the lowest groups include companies whose balance shows that the company is in danger.
Review of ratios of certain values in bookkeeping is a frequent method of evaluating business changes. This need to evaluate certain value compared to another one comes from the fact that observation of an isolated data often has low analytical value. Thus, for example, an income of RSD 300.000 per job does not provide any additional information except for absolute size of income.
Complete and more real image of quality of a bookkeeping change is provided by data on the ratio of such change with some other value.
In this context, financial statements that can answer the question "how relative" and not "how much" are important to the management.
Ratio analysis of financial statements compares analytically important relations between certain financial categories for review and evaluation of financial position of the company. The goal of this overview is not mere ascertainment of the status but an attempt to anticipate the financial position of your company in the future based on these ratios, and to make appropriate decisions on the management level of the company.
An Example of Ratio Analysis
In March this year the company had an income of 120000.00 . In March last year it had an income of 100000.00. Ratio analysis is much more interested in 20% , than the fact that income this March is 20000.00 larger than the March last year.
In accordance with aforementioned, SVM - united business solutions provides the following bookkeeping services:
These services are additional bookkeeping services and are mostly charged per analysis performed. The price of these bookkeeping services depends on the volume of operations and major activity of the company that is the client. Naturally, the price of the service depends on whether the potential company is the user of our united business solutions services, in which case special arrangement is made depending on services selected.