fundamentals
solvency
The ability of a company or individual to meet long-term financial obligations and debts.
Example
"The bank's solvency was questioned after it disclosed massive losses on bad loans."
💡 Memory Tip
SOLVE-ncy — a solvent company can SOLVE its debt problems. It can pay what it owes.
Etymology
From Latin 'solvere' meaning 'to loosen, pay' — the ability to pay (loosen) debts.
Common Misspellings
solvancysolvencysolvancysolvanse