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Web of Proceedings - Francis Academic Press
Web of Proceedings - Francis Academic Press

Analysis of Long-Term Solvency of Enterprises

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DOI: 10.25236/iwass.2021.014



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With the development of enterprise economy, the scale of operation and production will also expand, and foreign debt has become an indispensable means and strategy for the development of enterprises. Although debt can provide a large amount of funds for enterprises and play a decisive role in the production and development of enterprises, excessive debt will also bring corresponding risks. Moreover, there are many types of debt, and different kinds of debt will also bring different risks. In this paper, the long-term solvency index is selected as the object of analysis, and the asset-liability ratio, property right ratio and interest protection multiple of the enterprise are explained and analyzed in detail. If an enterprise wants to develop in a long-term and stable way, it is not appropriate to rely on short-term financing, so the importance of long-term financing is reflected, and the long-term solvency of the enterprise is also very important. This paper makes an in-depth study on the indicators of long-term solvency, and puts forward some reasonable suggestions and relevant measures on how to enhance the long-term solvency of an enterprise, which lays a solid and stable foundation for the continuous development of the enterprise in the future.


Long-term solvency, Asset-liability ratio, Equity ratio, Interest coverage multiple