Solvency Meaning in English

word

US

ˈsɔɫvənsi

SAWL-vuhn-see

UK

sˈɒlvənsi

SOL-vuhn-see

Definition

Solvency is the ability of a person, company, or organization to pay all their debts and meet long-term financial obligations.

Usage & Nuances

Mainly used in financial, business, and legal contexts. Common phrases: 'test of solvency', 'solvency ratio'. Not to be confused with 'liquidity', which refers to the ability to pay short-term debts.

• Spanish: solvencia
• Portuguese (BR): solvência
• Portuguese (PT): solvência
• Chinese (Simplified): 偿付能力
• Chinese (Traditional): 償付能力
• Hindi: दिवालिया न होने की स्थिति
• Arabic: الملاءة المالية
• Bengali: দেউলিয়া না হওয়ার ক্ষমতা - আর্থিক সক্ষমতা
• Russian: платёжеспособность
• Japanese: 支払能力
• Vietnamese: khả năng thanh toán
• Korean: 지급 능력
• Turkish: ödeme gücü
• Urdu: ادائیگی کی صلاحیت - مالی استحکام
• Indonesian: solvabilitas

Example Sentences

The company proved its solvency to investors.

basic

Banks check the solvency of loan applicants.

basic

Good solvency means you can pay your debts.

basic

Rising debts are threatening the company's solvency.

natural

After the audit, they questioned the firm's solvency.

natural

Maintaining solvency is crucial for any business, big or small.

natural