Solvency

Solvency, in finance or business, is the degree to which the current assets of an individual or entity exceed the current liabilities of that individual or entity.[1] Solvency can also be described as the ability of a corporation to meet its long-term fixed expenses and to accomplish long-term expansion and growth.[2] This is best measured using the net liquid balance (NLB) formula. In this formula, solvency is calculated by adding cash and cash equivalents to short-term investments, then subtracting notes payable.[3] There exist cryptographic schemes for both proofs of liabilities and assets, especially in the blockchain space.[4][5][6]

## Contents

* 1 See also
* 2 Notes
* 3 References
* 4 External links

## See also

* Accounting liquidity
* Debt ratio
* Going concern
* Insolvency
* Quick ratio

## Notes

1. ↑ Zietlow & Seidner 2007, p. 5
2. ↑ Gaist 2009, p. 34
3. ↑ Zietlow & Seidner 2007, p. 30
4. ↑ Ji & Konstantinos 2021
5. ↑ Chalkias et al. 2020
6. ↑ Dagher et al. 2015

## References

* Gaist, Paul A (2009). Igniting the Power of Community: The Role of CBOs and NGOs in Global Public Health. Springer. ISBN 978-0-387-98156-7. OCLC 310400989.
* Zietlow, John T; Seidner, Alan G (2007). Cash & investment management for nonprofit organizations. John Wiley and Sons. ISBN 978-0-471-74165-7. OCLC 255472451.
* Ji, Yan; Konstantinos, Chalkias (2021). "Generalized Proof of Liabilities". Computer and Communications Security (CCS) (ACM).
* Chalkias, Konstantinos; Lewi, Kevin; Mohassel, Payman; Nikolaenko, Valeria (2020). "Distributed Auditing Proofs of Liabilities". Zkproof.
* Dagher, Gaby G.; Bunz, Benedikt; Bonneau, Joseph; Clark, Jeremy; Boneh, Dan (2015). "Provisions: Privacy-preserving Proofs of Solvency for Bitcoin Exchanges". Computer and Communications Security (CCS) (ACM).

## External links

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