Solvency
From Infogalactic: the planetary knowledge core
<templatestyles src="Module:Hatnote/styles.css"></templatestyles>
Solvency, in finance or business, is the degree to which the current assets of an individual or entity exceed the current liabilities of that individual or entity.[1] Solvency can also be described as the ability of a corporation to meet its long-term fixed expenses and to accomplish long-term expansion and growth.[2] This is best measured using the net liquid balance (NLB) formula. In this formula solvency is calculated by adding cash and cash equivalents to short-term investments, then subtracting notes payable.[3]
Contents
See also
Notes
<templatestyles src="Reflist/styles.css" />
Cite error: Invalid <references>
tag; parameter "group" is allowed only.
<references />
, or <references group="..." />
References
- Lua error in package.lua at line 80: module 'strict' not found.
- Lua error in package.lua at line 80: module 'strict' not found.
External links
The dictionary definition of solvency at Wiktionary