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Solvency |
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SolvencyAbility to meet obligations.Solvency Similar MatchesInsolvency riskInsolvency riskThe risk that a firm will be unable to satisfy its debts. Also known as bankruptcy risk. Accounting insolvencyAccounting insolvencyTotal liabilities exceed total assets. A firm with a negative net worth is insolvent on the books. 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. InsolvencyInsolvencyThe inability of a person or company to settle debts when they become payable. |
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