HomeDefinitionsCompareDebt SolvencyThe financial definition for Solvency:Ability to meet obligations. Similar MatchesAccounting insolvencyAccounting insolvencyTotal liabilities exceed total assets. A firm with a negative net worth is insolvent on the books. Insolvency riskInsolvency riskThe risk that a firm will be unable to satisfy its debts. Also known as bankruptcy risk. Short term solvency ratiosShort term solvency ratiosRatios used to judge the adequacy of liquid assets for meeting short-term obligations as they come due, including (1) the current ratio, (2) the acid test ratio, (3) the inventory turnover ratio, and (4) the accounts receivable turnover ratio. Click to compare definitions of Solvency Click to view definitions beginning so |