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- DictionarySol·ven·cy/ˈsälvənsē/
noun
- 1. the possession of assets in excess of liabilities; ability to pay one's debts: "the company was confident that solvency could be maintained"
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Definition of solvency noun in Oxford Advanced Learner's Dictionary. Meaning, pronunciation, picture, example sentences, grammar, usage notes, synonyms and more.
Solvency is the ability of a firm to handle longstanding financial obligations. Analysts heavily rely on this metric to assess a company's financial standing, especially its management of long-term debts.
Solvency is the possession of assets in excess of liabilities, or more simply put, the ability for one to pay their debts. This is an important metric for a business. If a business does not have the capital to pay off their debts, it means they are at risk of defaulting, which can severely cripple, or even end their business operations.
Solvency primarily focuses on the long-term financial stability of an entity. It assesses whether an organization can meet its long-term financial obligations, including repayment of debt and other commitments.
May 29, 2024 · A person or organization's solvency is their ability to pay their debts. ...unsound investments that could threaten the company's solvency. American English : solvency / ˈsɒlvənsi /
Jan 31, 2024 · In the world of finance, solvency refers to the ability of a company or individual to meet their long-term financial obligations. It is a crucial aspect of financial stability and plays a vital role in determining the overall health and viability of an entity.
The meaning of SOLVENCY is the quality or state of being solvent. How to use solvency in a sentence.
