Examples of solvency in a Sentence
They reviewed financial records to measure the borrower's solvency.
Recent Examples of solvency from the Web
Modern currency values are linked to the credibility and solvency of national governments.
The amount of capital pledged is enough to address the lenders’ solvency challenges and recapitalize them adequately, Vadlamani, who is vice president of the financial institutions group at the unit of Moody’s Corp., said by phone.
Bombardier’s bonds, a barometer of its solvency, rallied sharply Tuesday. Plugging the CSeries into Airbus’ massive aftermarket service network gives airlines confidence to operate the planes globally.
Members of Congress are discussing a number of options, ranging from a temporary renewal of the program to a more-comprehensive fix designed to return the program to solvency.
For some, this looked less like progress and more like a dangerous and destabilizing trend that could threaten not just literature, but the solvency of civilization itself.
If that were true, cuts to taxes other than the payroll taxes that allegedly finance the programs would pose no threat to their solvency.
The district's overall solvency is pat of the review.
The program is completely safe through 2034, and with some relatively small tax changes, it could be brought to permanent solvency.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'solvency.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
First Known Use of solvency
Financial Definition of SOLVENCY
How It Works
Solvency measures a company's ability to meet its financial obligations.
Short-term solvency is often measured by the current ratio, which is calculated by dividing current assets by current liabilities.
Longer-term solvency is evaluated using the solvency ratio, which divides the company’s net worth by its total assets.
A business can be insolvent but still profitable. For example, a company may borrow money to expand its operations and be unable to immediately repay its debt from existing assets. In this instance, the lender assumes cash flows will increase because of the business expansion and enable the company to comfortably meet payment obligations in the future.
Why It Matters
A company's solvency determines its ability to service debts and achieve long-term growth and profitability. A business that is completely insolvent is unable to pay its debts and will be forced into bankruptcy. Investors should examine all the financial statements of a company to make certain the business is solvent as well as profitable.
SOLVENCY Defined for English Language Learners
Seen and Heard
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