Solvency
When you are solvent your time belongs to you & your family.
We believe that everyone knows when they are unable to deal with their level of debt. Most of our clients did not enter into borrowing money with a view to not pay it back. It is often unforeseen circumstances which cause financial pressure in the first place. We must remember that each of your credit providers would have undertaken their own credit risk assessment before advancing you to any credit facility. It is only after a change in circumstances, which could be as simple as one of the family losing their overtime or in the worst-case scenario, losing their jobs, that the pressure of your creditors becomes unbearable. We can help you to deal with this.
Removing this pressure can have significant positive emotional & physical health
benefits:
- You will not feel isolated & unable to talk to your family about what is worrying you;
- You will not feel so tired, under pressure or depressed;
- You are then able to plan for your & your family’s future again.
We at Cromwell Seymour look after your interests at all times.
Preparation a Statement of Affairs
Cromwell Seymour can use ratios to analyse a company’s solvency. The interest coverage ratio divides operating income by the interest expense to show a company’s abilities to pay its debts, the higher the result is a good indication that the company is solvent. Also, a debt-to-asset ratio figure divides a company’s liability by the value of its assets, as to whether or not the directors have taken on too much debt and, in this instance, a lower result indicates greater solvency. Equity ratios when calculated demonstrate the number of funds that remain over the value of the assets, are offset by the outstanding debt when divided amongst the eligible stakeholders.
The ratios vary from industry to industry and this factor is important
before drawing any conclusions.