solvency
solvency Lexical Profile
solvency Game Scores & Validity
• noun
The possession of assets in excess of liabilities; the financial capacity to pay one's debts and meet long-term obligations.
"The central bank intervened to ensure the long-term solvency of the country's major financial institutions."
The ability of a liquid or other substance to dissolve another substance.
"Chemists tested the solvency of the new compound across various temperatures."
Word Nuance & Usage
In financial usage, 'solvency' is distinct from 'liquidity': solvency refers to the long-term capacity to meet all debts (having total assets exceeding total liabilities), whereas liquidity refers to the short-term availability of cash to pay immediate bills.
• Rhymes for solvency
Word Origin & Etymology
Formed in the early 18th century from 'solvent', which derives from the Latin present participle 'solvens' (from 'solvere', meaning 'to loosen, release, or pay a debt').
Usage Trend
Historical frequency of usage in published text.