solvency in a sentence
n.
📚 Grade Level: Grade 11, Grade 12
Definition
Solvency is the ability of a company to meet its long-term financial obligations and liabilities.
Sample Sentences
- The company's solvency was called into question after several months of declining revenue.
- Investors are often concerned about a firm's solvency before committing their capital.
- During the financial audit, the accountants assessed the solvency ratios to ensure compliance.
- A sudden drop in sales can quickly jeopardize a business's solvency and ability to meet obligations.
- Maintaining solvency is crucial for businesses to sustain operations and attract potential investors.