Solvency (noun)

  1. The ability of a company or individual to pay their debts as they come due.
  2. The ability of a government or a country to meet its financial obligations.

Origin:

From french solvabilité, from latin solvěre ("to pay, settle, discharg.e")

Examples:

  1. The company's solvency was in question as it struggled to pay its bills.
  2. The solvency of the government was in doubt as it struggled to pay its debt.
  3. The company's solvency was improved by the new contracts it had won.
  4. The solvency of the bank was questioned after the financial crisis.
  5. The solvency ratio, which measures a company's ability to pay its debt, was low.
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