solvency
n. uncountable C1 Advanced US //ˈsɔɫvənsi// UK //sˈɒlvənsi// sol·ven·cy
n. the ability of a person or company to pay their debts. If you have this, you have enough money to cover what you owe.
n. the state of being able to pay one's debts as they become due. Often used in legal and financial contexts to describe the health of a business or individual.
The bank checked the company's solvency before approving the loan.
After the merger, the combined firm's solvency was questioned by several major investors who feared a cash crunch.
The court ordered an independent audit to determine the solvency of the estate, as the executor had failed to provide a clear account of the remaining liquid assets.
From solvent + -cy.
- Nounsolvency
- Adjectivesolvent