BusinessJune 14, 2026
solvency
/ˈsɒlvənsi/
Definition
The financial ability of a company to meet its long-term debts and other financial obligations.
Etymology
Derived from the Latin 'solvens', the present participle of 'solvere' (to loosen or pay). It entered English in the 18th century to describe the state of being able to 'loosen' or pay off one's debts.
In the news
While the article focuses on the massive investment returns from SpaceX, solvency is the underlying state of financial health that allows a company like SpaceX to sustain its operations and grow into a $1.8 trillion entity.
From startup to $1.8 trillion: The investors who took a chance on SpaceX now reap the rewards
Read the full article ↗CNBC