Liquidity vs. Solvency

Liquiditynoun

(finance) The degree of which something is in high supply and demand, making it easily convertible to cash

Liquiditynoun

(uncountable) The state or property of being liquid.

Liquiditynoun

An asset's property of being able to be sold without affecting its value; the degree to which it can be easily converted into cash.

Liquiditynoun

(finance) Availability of cash over short term: ability to service short-term debt.

Liquiditynoun

The state or quality of being liquid.

Liquiditynoun

the state in which a substance exhibits a characteristic readiness to flow with little or no tendency to disperse and relatively high incompressibility

Liquiditynoun

the property of flowing easily

Liquiditynoun

being in cash or easily convertible to cash; debt paying ability

Solvencynoun

(finance) The state of having enough funds or liquid assets to pay all of one's debts; the state of being solvent.

Solvencynoun

The quality or state of being solvent.

Solvencynoun

the ability to meet maturing obligations as they come due

Solvency

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. 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.