soliditet

Soliditet, in financial contexts often translated as equity ratio, is a measure of a company’s long-term financial stability. It expresses the portion of the company's assets that are financed with shareholders’ equity rather than debt. The metric is commonly used in Sweden and other Nordic countries, and is also understood in international accounting as an indicator of solvency.

Calculation and interpretation: soliditet is calculated as eget kapital (equity) divided by totala tillgångar (total assets), as reported on the balance sheet. Both figures are typically end-of-period values, though some analyses use averages. A higher soliditet indicates a larger cushion to absorb losses and meet obligations, implying lower financial risk. A lower soliditet points to higher leverage and greater sensitivity to adverse events. There is no universal threshold; acceptable levels vary by industry, business model, and access to capital. For capital-intensive or high-growth sectors, lower ratios may be more common, while mature, stable companies often maintain higher ratios.

Limitations and related concepts: Soliditet focuses on long-term solvency and does not reflect liquidity or profitability. It can be affected by accounting policies, asset valuations, and balance-sheet structure, including intangible assets. It is related to, but distinct from, liquidity ratios (such as the current ratio) and profitability metrics. Analysts typically consider soliditet alongside debt leverage, cash flow, and industry benchmarks to assess overall financial health. Example: a company with 2 million in equity and 6 million in assets has a soliditet of about 33 percent.