financial solvency
Able to pay
Financial solvency is the ability to meet long-term financial obligations—having assets that exceed liabilities.
A company with financial solvency can pay its debts as they come due and remain operational indefinitely.
The term appears in banking, insurance, and corporate finance: Regulators questioned the bank's financial solvency.
Distinct from liquidity, which concerns short-term cash availability.
- fiscal healthSoundness of money matters
- assetsOwned items of value
- bankruptcy lawsStatutes governing debt relief
- budgetingAllocating funds systematically
- belt tighteningReducing expenditures deliberately
liabilities · cost-cutting · net worth · bottom line · in the black · credit rating · going concern · working capital · debt restructuring · revenue generation · equity · paying the bills · rainy day fund · stress test · diversification · overleveraging · debt trap · cash flow
financial solvencyinsolvency
Inability to pay debts
bankruptcy · financial insolvency · default · financial ruin · financial collapse
financial solvencyfinancial distress
Inability to meet obligations
financial collapse · financial instability · illiquidity · fiscal crisis · cash flow crisis
financial, financially, finance, finances, financed, financing, financier, financiers, solvent