noun
- the ability to pay debts as they become due; financial soundness
Usage: business; finance
Examples
- The company’s solvency improved after restructuring its debt.
- Banks must maintain adequate solvency ratios to operate legally.
- The audit confirmed the firm’s long-term solvency.
- Investors were concerned about the airline’s solvency during the crisis.
- The new loan threatened the small business’s solvency.
- Regulators monitor insurance companies’ solvency closely.