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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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- Solvency
Financial term
Solvency, in finance or business, is the degree to which the current assets of an individual or entity exceed the current liabilities of that individual or entity. Solvency can also be described as the ability of a corporation to meet its long-term fixed expenses and to accomplish long-term expansion and growth. This is best measured using the net liquid balance (NLB) formula. Wikipedia
