solvent

Intermediate 💰 Finance / Accounting

Definition

In finance, the blessed state of actually being able to pay your debts when they come due—a concept that feels increasingly mythical. Your assets exceed your liabilities, you can sleep at night, and creditors aren't calling. In chemistry, it's the liquid that dissolves other substances, which is coincidentally what financial insolvency does to your peace of mind.

Example Usage

The accountant assured the board that despite concerning cash flow, the company remained technically solvent, which is finance-speak for 'we're fine but maybe panic a little.'

Source: Financial and chemistry terminology via Free Dictionary API

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