Word
solvency
Phoneticssol·ven·cy, stress on the first syllable
US/ˈsɔɫvənsi/
UK/sˈɒlvənsi/
Uncountable noun Finance
Definition
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.
Examples
“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.”
Examples
simple
“The bank checked the company's solvency before approving the loan.”
contextual
“After the merger, the combined firm's solvency was questioned by several major investors who feared a cash crunch.”
complex
“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.”
Real-World Examples
“The insurance sector has been struggling with eroding profitability owing to persistently low interest rates, with numerous small and mid-sized insurers reporting deteriorating solvency ratios, a measure of financial health.” “They were dismissed as a begging-bowl approach by many critics but, having been launched around the story of the Panama Papers, offered a sudden and irresistible route-map to solvency.” Etymology
From solvent + -cy.
Etymology adapted from Wiktionary, available under CC BY-SA 4.0.
Word family
VERB
NOUN
ADJECTIVE
Domain
- Exam level
- CambridgeCambridgeCambridge English QualificationsThe exam suite from Cambridge University Press & Assessment, from A1 Movers up to C2 Proficiency. The benchmark names double as CEFR labels.C1 AdvancedIELTSIELTSInternational English Language Testing SystemThe 0–9 band test co-owned by the British Council, IDP, and Cambridge. Used for university entry, work, and migration.7.0–8.0TOEFL iBTTOEFL iBTTest of English as a Foreign Language, Internet-Based TestETS's academic English test, the standard route for US university admissions. Scored 0–120, with a 1–6 scale since 2026.1–6 scale: 5.0–5.595–113TOEICTOEICTest of English for International CommunicationETS's workplace English test, big in Japan and Korea. Listening & Reading scores 10–990 and tops out at C1.945–990
- Frequency
- Occasional
- Level
- C1 · Advanced
- Updated
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QR code
englishreference.com/q/solvency