solvency

  

Definition

Financial soundness of an entity that allows it to discharge its monetary obligations as they fall due. It is measured by solvency ratios.

Use solvency in a sentence

  • XYZ inc. pays their vendors and employees on time every time without delay , demonstrating awesome solvency, making it a great company to deal with.

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  • Knowing a products solvency will let you know how much long term potential it really may have for your company.

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  • The gentleman's business had a lack of solvency so his bankruptcy filing was imminent and unavoidable as the debt was piling up.

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