Share This Article:

Economic Definition of solvency. Defined.

Offline Version: PDF

Term solvency Definition: The condition of a business when liabilities (excluding any ownership equity) are less than assets. In other words, the business is doing fine and able to pay all of it's debts. This is most important when contrasted with the alternative, insolvency.

 

« solidarity | Sotheby's »

Permalink: https://glossary.econguru.com/economic-term/solvency

Alphabetical Reference to Over 2,000 Economic Terms