Solvency refers to the long-term ability to generate sufficient cash to satisfy plant capacity needs,fuel growth,and to repay debt when due.

Solvency

The ability of an entity to meet its long-term financial obligations.

Long-term Ability

The potential of an entity or individual to sustain performance or activity over an extended period.

Cash

Currency or funds that a company has in bank accounts and physical money on hand, readily available for use.