Solvency ratios evaluate the: O profitability of the firm, and its future cashflow prospects within its given industry. historical performance of the firm, including past stock price volatility and EPS (earnings per share) beats and misses, as well as sell-side analyst remarks. the ability of the firm to maintain its business operations over the long run and avoid an excessivo debt burden or bankruptcy. ability of the firm to utilize its assets in an efficient manner. the ability of the firm to convert short-term assets into cash to meet short-term financing needs