Financial indicators of Wang, Dennis and Tu’s solvency test
| Type | Indicator | Measurement |
|---|---|---|
| Cash Solvency | Cash Ratio | (Cash+ Cash Equivalents+ Investments)/Current Liabilities |
| Quick Ratio | (Cash+ Cash Equivalents+ Investments+ Receivables)/ Current Liabilities | |
| Current Ratio | Current Assets/Current Liabilities | |
| Budget Solvency | Operating Ratio | Total Revenues/Total Expenses |
| Surplus or Deficit Per Capita | Total Surplus (Deficit)/ Population | |
| Long-run Solvency | Net Asset Ratio | Restricted or Unrestricted Net Assets/Total Assets |
| Long-Term Liability Ratio | Long-Term (Non-Current) Liabilities/Total Assets | |
| Long-Term Liability Per Capita | Long Term (Non-Current) Liabilities/Population | |
| Service Solvency | Tax Per Capita | Total Taxes/Population |
| Revenue Per Capita | Total Revenue/Population | |
| Expenses Per Capita | Total Expenses/Population |
| Type | Indicator | Measurement |
|---|---|---|
| Cash Solvency | Cash Ratio | (Cash+ Cash Equivalents+ Investments)/Current Liabilities |
| Quick Ratio | (Cash+ Cash Equivalents+ Investments+ Receivables)/ Current Liabilities | |
| Current Ratio | Current Assets/Current Liabilities | |
| Budget Solvency | Operating Ratio | Total Revenues/Total Expenses |
| Surplus or Deficit Per Capita | Total Surplus (Deficit)/ Population | |
| Long-run Solvency | Net Asset Ratio | Restricted or Unrestricted Net Assets/Total Assets |
| Long-Term Liability Ratio | Long-Term (Non-Current) Liabilities/Total Assets | |
| Long-Term Liability Per Capita | Long Term (Non-Current) Liabilities/Population | |
| Service Solvency | Tax Per Capita | Total Taxes/Population |
| Revenue Per Capita | Total Revenue/Population | |
| Expenses Per Capita | Total Expenses/Population |
Source: Wang et al. (2007).
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