Solvency

usgb/ˈsɑːlvənsi/
noun

The state of being able to pay all your debts.

After years of financial struggle, the company has finally achieved solvency.
Visual representation of "solvency" - The state of being able to pay all your debts.

Often appears as...

  • achieve solvency
  • maintain solvency

Usage tips

Formal

Financial

Definition 1 of 2
Visual representation of "solvency"
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Business Relevance

Used often in financial or business contexts to discuss a company's health.

Illustration for Business Relevance
The board reviewed the quarterly report to assess the company's solvency.
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Positive Connotation

Implies a positive financial status, suggesting reliability and trust.

Illustration for Positive Connotation
Given the company's solvency, investors feel confident in its future.
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Legal Context

May be used in legal scenarios, especially in bankruptcy proceedings.

Illustration for Legal Context
The court will evaluate the solvency of the business before approving the restructuring plan.
Visual representation of the word "Solvency"

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