Solvency is whether you own more than you owe — the long-term ability to stay financially afloat.
Solvency is the condition in which total assets exceed total liabilities, indicating the operation can meet long-term obligations.
Solvency reflects long-term staying power. Lenders look at it to judge whether an operation can survive downturns.
An operation whose assets comfortably exceed its debts is considered solvent.
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