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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"
Solvency definition: solvent condition; ability to pay all just debts.. See examples of SOLVENCY used in a sentence.
the ability to pay all the money that is owed: Questions were raised about the financial solvency of the university. The tax system is so full of holes that the country's solvency is threatened. See. solvent. Fewer examples. The tax cut has threatened the long-term solvency of those programs. The company was struggling to meet new solvency rules.
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. [2]
Definition and examples. In business and finance, solvency refers to a company’s or person’s ability to meet their long-term fixed expenses, i.e., pay their bills. A solvent company is one whose current assets exceed its current liabilities, the same applies to an individual or any entity.
Jun 1, 2021 · Updated June 1, 2021. What is Solvency? Solvency is a company’s ability to pay its debts as they become due. How Does Solvency Work? Solvency measures a company's ability to meet its financial obligations. Short-term solvency is often measured by the current ratio, which is calculated by dividing current assets by current liabilities.
May 14, 2024 · noun. solvent condition; ability to pay all just debts. Most material © 2005, 1997, 1991 by Penguin Random House LLC. Modified entries © 2019 by Penguin Random House LLC and HarperCollins Publishers Ltd. Word origin. [ 1720–30; solv ( ent) + -ency] Examples of 'solvency' in a sentence. solvency.
Definition of solvency noun from the Oxford Advanced Learner's Dictionary. solvency. noun. /ˈsɒlvənsi/ /ˈsɑːlvənsi/ [uncountable] the state of not being in debt (= not owing money) There are serious doubts as to the company’s solvency. Join us.
