Solventní

Solventní is a term used in finance and accounting to describe the ability of a company or individual to meet its short-term obligations. This refers to having sufficient liquid assets, such as cash or easily convertible investments, to cover debts that are due within a year. A solvent entity is considered financially stable and capable of operating without facing immediate financial distress.

The concept of solvency is closely related to liquidity, but it focuses on a longer-term perspective. While liquidity assesses immediate cash availability, solvency looks at the overall financial health and the ability to pay off all debts, both short-term and long-term. A company can be liquid but not solvent if it has significant long-term debts that it cannot realistically repay. Conversely, an illiquid company might still be solvent if it possesses valuable assets that can eventually be sold to meet its obligations.

Key indicators used to assess solvency include the debt-to-equity ratio, which compares a company's total liabilities to its shareholder equity, and the interest coverage ratio, which measures a company's ability to pay interest expenses on its outstanding debt. These ratios help investors and creditors understand the financial risk associated with an entity. Maintaining solvency is crucial for a business's reputation, its ability to secure financing, and its long-term survival.