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Solvency Meaning in English

word

ˈsɔɫvənsi
SAWL-vuhn-see
sˈɒlvənsi
SOL-vuhn-see

Definición

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

Uso & Matices

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.

Oraciones de Ejemplo

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