Solvency Analysis.pdf

Investments are a kind of waiver, with great economic and social importance, and businesses must conduct investment activities to survive in a turbulent environment. A company's solvency and position are crucial in reviewing investment capabilities. The company "X" has a dominant activity in water management, with a vision to ensure long-term survival, increase business participation, and achieve significant market position. However, the company faces external problems, including the inability to technically upgrade due to the impossibility of obtaining a permit from the Privatization Agency. The company's solvency can be understood as a kind of "personal card" that enables insight into financial stability, liquidity, and solvency, and its financial strength is characterized by permanent payment, financing, investment, and profit-making capabilities. An analysis of the company's bonitet is conducted based on financial reports for 2013 and 2014, showing a high level of business risk and a low level of financial risk.