formal10K+

UK//ˈsɒlvənsi//US//ˈsɑlvənsi//

Meaning of Solvency

In simple words: The ability to pay debts.

Solvency in a sentence

  • The company's solvency was questioned after the unexpected loss in sales.
  • Maintaining solvency is crucial for any business to survive economic downturns.
  • Investors often assess a firm's solvency before making investment decisions.
  • A good credit score is an indicator of solvency for personal finance.
  • The audit's findings confirmed the company's continued solvency and viability.

How to use Solvency

Used mainly in financial or legal contexts. Not common in everyday conversation. Best suited for professional settings.

Grammar pattern

standalone noun

Memory hint

Think of 'solve' and 'c' for cash – it means you can solve your cash issues.

Related words

Collocations with Solvency

  • assess solvency
  • improve solvency
  • indicators of solvency

Synonyms for Solvency

  • financial stability
  • creditworthiness
  • liquidity
  • fiscal soundness

Common mistakes with Solvency

  • Confused with 'solvent' - 'solvency' is a noun, while 'solvent' can be an adjective.
  • May use incorrectly in casual contexts where 'financial health' is more appropriate.
  • Misunderstanding the concept - associates solvency only with profits instead of debts.

Solvency appears in

Solvency in other languages

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Frequently asked questions about Solvency

What does Solvency mean?

The ability to pay debts.

What is the definition of Solvency?

The ability of a company or individual to meet their long-term financial commitments.

How do you use Solvency in a sentence?

The company's solvency was questioned after the unexpected loss in sales.

Can you give another example of Solvency?

Maintaining solvency is crucial for any business to survive economic downturns.

What are synonyms for Solvency?

Common alternatives include financial stability, creditworthiness, liquidity, fiscal soundness.

What words go with Solvency?

It commonly pairs with assess solvency, improve solvency, indicators of solvency.

What are common mistakes when using Solvency?

Confused with 'solvent' - 'solvency' is a noun, while 'solvent' can be an adjective. May use incorrectly in casual contexts where 'financial health' is more appropriate. Misunderstanding the concept - associates solvency only with profits instead of debts.

How do you pronounce Solvency?

US: //ˈsɑlvənsi//, UK: //ˈsɒlvənsi//. Listen to the audio above to hear native pronunciation.

Is Solvency formal or informal?

"Solvency" is formal, so it fits professional, business, or academic conversations.

When should I use Solvency?

Used mainly in financial or legal contexts. Not common in everyday conversation. Best suited for professional settings.