Solidity ratio — how big is the buffer?
Formula: equity ÷ total assets × 100.
The solidity ratio shows what share of the company's assets is financed by the owners' own money rather than debt. The higher it is, the bigger the buffer for absorbing bad years. As a conservative rule of thumb, a solidity ratio above 30% is often considered robust for smaller Nordic companies, while below 10% leaves a thin cushion. Negative equity — a solidity ratio below zero — is a serious warning sign.
Liquidity ratio — can the bills be paid?
Formula: current assets ÷ short-term debt.
The liquidity ratio compares the assets that can be turned into cash within a year with the debt falling due in the same period. Above 1 means current assets cover the short-term debt; around 1.5–2 is often considered comfortable. Below 1 is not automatically critical — grocery retail, for example, often runs low because inventory turns over quickly — but it should be explained by the business model.
EBITDA margin — operating earning power
Formula: EBITDA ÷ revenue × 100.
EBITDA is the result before interest, tax, depreciation and amortisation, and the margin shows how much of each unit of revenue becomes operating earnings. Levels vary enormously between industries — software companies typically sit far above haulage firms — so compare within the industry and against the company's own history rather than across sectors.
Return on assets (ROA) — what do the assets earn?
Formula: net profit ÷ total assets × 100.
Return on assets measures how effectively the company turns its total assets into profit. An asset-heavy company (factories, property) will naturally show a lower ROA than an asset-light one (consulting, software) — once again, comparing within the industry makes the most sense.
Reading ratios responsibly
- One year is not a trend — look at the development across several financial years.
- Smaller Danish companies (accounting class B) often report only gross profit, and without a revenue figure the EBITDA margin cannot be computed.
- Ratios are computed from filed figures and cannot stand alone — they are a starting point for questions, not a conclusion, and not advice.
See the ratios in practice on a profile such as Risika A/S, find a company via the front page, or read how the numbers fit into a full check in the guide Check a company for free.
Frequently asked questions
What is a good solidity ratio?
It depends on the industry, but above 30% is often considered robust for smaller Nordic companies, while below 10% leaves a thin buffer. Negative equity is a serious warning sign.
Why is the EBITDA margin missing for some companies?
Because it requires a revenue figure. Smaller Danish companies in accounting class B may report only gross profit, in which case the margin cannot be computed.
Are the ratios taken directly from the register?
No. The register holds the filed financial figures; Riskpilot computes the ratios from them using the formulas shown.
Can I make a credit decision from ratios alone?
No. Ratios are a starting point, not a conclusion. Riskpilot does not provide credit ratings or advice — for that purpose there is Risika's platform.