Solvency

What Does Solvency Mean?
The ability of a corporation to meet its long-term fixed expenses and to accomplish long-term expansion and growth.

Investopedia explains Solvency
The better a company's solvency, the better it is financially. When a company is insolvent, it means that it can no longer operate and is undergoing bankruptcy.

Related Terms

Bankruptcy
Chapter 11
Chapter 7
Economic Capital
Expense
Liquidity Crisis
McDonough Ratio
More Related Terms

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