Fizetképesség

Fizetképesség, meaning solvency in English, refers to a company's or individual's ability to meet their financial obligations, particularly their long-term debts and liabilities. It is a crucial indicator of financial health, demonstrating that an entity has sufficient assets to cover its outstanding debts.

In business, fizetképesség is often assessed by analyzing a company's balance sheet and income statement. Key financial ratios such as the debt-to-equity ratio and the interest coverage ratio are used to gauge this ability. A company with strong fizetképesség is generally considered a safer investment and a more reliable business partner. Conversely, a lack of fizetképesség can signal financial distress, potentially leading to bankruptcy.

For individuals, fizetképesség relates to their capacity to pay off loans, mortgages, and other financial commitments. Lenders assess an individual's fizetképesség through credit scores and income verification. Maintaining good fizetképesség is essential for securing loans, obtaining favorable interest rates, and ensuring financial stability. It is a fundamental concept in both personal and corporate finance, highlighting the importance of responsible financial management.