Explanation:

Let’s break down the options:

- Current Ratio: This checks if a company can pay its short-term bills. It compares current assets to current liabilities. Great for liquidity, but it doesn’t tell you much about long-term survival.

- Quick Ratio: Like the current ratio, but strips out inventory for an even quicker look at paying those short-term debts. Still a short-term measure.

- Net Profit Ratio: This tells you how much profit a company makes for every dollar of sales. Useful for profitability analysis, not solvency.

- Debt/Equity Ratio: Here’s the answer you want. This shows how much the company relies on borrowed money compared to owners’ funds. High ratio? More debt. It signals whether the company could survive and pay debts in the long run.

Bottom line: For long-term solvency, Debt/Equity Ratio is what you’re looking for.