Fizetképességi

Fizetképességi, a Hungarian term, translates to solvency or ability to pay in English. It refers to a company's or individual's capacity to meet its financial obligations when they become due. This concept is crucial for assessing financial health and stability.

In the context of businesses, fizetképességi is evaluated through various financial ratios and indicators. These often include liquidity ratios, such as the current ratio and quick ratio, which measure a company's ability to cover short-term debts with its short-term assets. Solvency ratios, like the debt-to-equity ratio, are also important as they assess a company's ability to meet its long-term obligations. Creditors, investors, and suppliers use these metrics to gauge the risk associated with extending credit or investing in a particular entity.

For individuals, fizetképességi relates to their personal financial situation, assessing whether they have enough income and assets to cover their debts and living expenses. Lenders, such as banks offering mortgages or personal loans, will analyze an individual's credit history, income, and existing debts to determine their fizetképességi before approving financing. A strong fizetképességi generally indicates a reliable borrower or a stable business. Conversely, a lack of fizetképességi can lead to financial distress, default, and even bankruptcy.