by Online Tutorial & Training Guide | Jan 14, 2026 | Financial Analysis, Terminologies
The ability to meet long-term obligations. Solvency is assessed by debt-to-equity and interest coverage ratios. A solvent company is more stable and less risky to creditors.
by Online Tutorial & Training Guide | Oct 1, 2025 | Financial Analysis, Terminologies
The ability of a company to meet short-term obligations. Measured using ratios such as current ratio and quick ratio. High liquidity means stronger financial flexibility.
by Online Tutorial & Training Guide | Sep 12, 2025 | Financial Analysis, Terminologies
The difference between current assets and current liabilities. Positive working capital means the company can cover short-term obligations. It reflects day-to-day operational efficiency.