solvency

Meanings

• noun

  The ability of a business or an individual to pay its debts as they become due. It is a financial concept that measures the financial health of a business or an individual.

  - "The company's solvency allowed it to weather the economic downturn."
  - "Despite having a high income, John's solvency was questionable due to his large debts."

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Antonyms

insolvency

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Rhymes

Words rhyming with solvency
resolve , dovetail , coalesce , submerge

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Variants

List of all variants of solvency that leads to same result
solvencies , solvency

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Etymology

origin and the way in which meanings have changed throughout history.

From the Latin word 'solvēre' meaning to pay off or dissolve.

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Trivia

Any details, considerations, events or pieces of information regarding the word

1. Solvency is a key factor in determining creditworthiness.

2. The solvency ratio is a commonly used measure of a company's financial health.

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Related Concepts

informations on related concepts or terms closely associated with the word. Discuss semantic fields or domains that the word belongs to

1. Insolvency: The opposite of solvency, where a business or an individual is unable to pay its debts.

2. Liquidity: The ability to convert assets into cash quickly and easily.

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Culture

Any cultural, historical, or symbolic significance of the word. Explore how the word has been used in literature, art, music, or other forms of expression.

Solvency is a crucial concept in finance and economics, and it has been extensively discussed in various fields. It is a common theme in business literature, where it is often used to evaluate the financial health of companies.

How to Memorize "solvency"

1. visualize
   

   - Visualize a healthy financial situation with enough income to cover all debts.

2. associate
   

   - Associate the word with the ability to pay debts and financial health.

3. mnemonics
   

   - Use the mnemonic 'Solvency Saves' to remember the concept.

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