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solvency

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sol⋅ven⋅cy

  [sol-vuhn-see]
Use solvency in a Sentence
–noun
solvent condition; ability to pay all just debts.
Origin:
1720–30; solv(ent) + -ency
Dictionary.com Unabridged
Based on the Random House Dictionary, © Random House, Inc. 2009.
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sol·vent   (sŏl'vənt, sôl'-)   
adj.  

  1. Capable of meeting financial obligations.

  2. Chemistry Capable of dissolving another substance.

n.  

  1. Chemistry

    1. A substance in which another substance is dissolved, forming a solution.

    2. A substance, usually a liquid, capable of dissolving another substance.

  2. Something that solves or explains.


[French, from Latin solvēns, solvent-, present participle of solvere, to loosen; see solve.]
sol'ven·cy n.
The American Heritage® Dictionary of the English Language, Fourth Edition
Copyright © 2009 by Houghton Mifflin Company.
Published by Houghton Mifflin Company. All rights reserved.
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Financial Dictionary

Solvency

The ability of a corporation to meet its long-term fixed expenses and to accomplish long-term expansion and growth.

Investopedia Commentary

The better a company's solvency, the better it is financially. When a company is insolvent, it means that it can no longer operate and is undergoing bankruptcy.

Related Links

An Overview Of Corporate Bankruptcy
Z Marks The End

See also: Bankruptcy, Chapter 11, Chapter 7, Expense

Also spelled: solvability

Investopedia.com. Copyright © 1999-2005 - All rights reserved. Owned and Operated by Investopedia Inc.
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Legal Dictionary

Main Entry: sol·ven·cy
Pronunciation: 'säl-v&n-sE
Function: noun
: the quality or state of being solvent
Merriam-Webster's Dictionary of Law, © 1996 Merriam-Webster, Inc.
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