Solvency refers to the ability of a

Solvency refers to the ability of an enterprise to repay short-term or long-term debts from its assets. Solvency analysis is to observe and judge whether the enterprise has the liquidity and safety degree through the analysis of the enterprise assetsThe ability to repay due debts and the strength of the ability to repay. According to the maturity time, debt is generally divided into short-term debt and long-term debt. Therefore, enterprise debt paying ability includes short-term debt paying ability and long-term debt paying abilityTwo aspects of force. Short-term debt paying ability refers to the degree of guarantee that an enterprise can repay current liabilities in full and timely with current assets, that is, the ability of an enterprise to repay current liabilities with current assets, which reflects the repayment date of an enterpriseThe ability of constant maturity debt is an important index to measure the current financial ability of an enterprise, especially the liquidity ability of current assets. Long-term solvency refers to the ability of the enterprise to repay long-term debts, or the enterprise inThe ability of a company's earnings or assets to be used to repay long-term liabilities when they mature.