Definition, Meaning & Synonyms
solvency
noun
/ˈsɒlvənsi/
Definition
The ability of an individual or organization to meet its long-term financial obligations.
Examples
- The company’s solvency was questioned after it reported significant losses over the past year.
- Maintaining solvency is crucial for businesses looking to secure funding from investors.
- A thorough analysis of a firm’s solvency can help assess its ability to withstand economic downturns.
Meaning
Solvency refers to the state of having enough assets to cover liabilities, symbolizing financial stability and health.
Synonyms
- financial stability
- liquidity
- solvable
- fiscal health
