Solvency is the ability of a business to meet interest payments when due and pay debt balances when due. Solvency measures a company's ability to survive in the long term. While solvency ratios measure a business's short-term ability through numbers like current assets and current liabilities, solvency takes a look at the bigger picture and numbers like total assets and liabilities. The first ratio to measure the solvency of a company is the debt-to-assets ratio. The debt-to-equity ratio measures exactly how much of a company's total assets are financed or provided through debt. The reason this ties into solvency is that a highly leveraged company has less wiggle room and less flexibility financially. So, if times get tough for the company, it is more likely to fail due to its large liabilities. For Cisco the debt-to-equity ratio is 0.461:1, while for Logitech it is 0.468:1. These two values ​​are so close for the two companies that they undoubtedly represent the industry and entertainment average, and while the .46 range means that the majority of both companies are financed through equity, 46% is definitely a part significant portion of the company's capital.