Solvency

Definition: 

The extent to which a firm can meet its financial commitments in the long-term; related to the financial stability of the business (level of debt to equity, and projected revenues derived from use of funds).

A business with high debt levels and declining revenues / profitability is at risk of insolvency. 

Improvements in solvency can be gained by equity injections to pay down debt.

Ratio and Statement:

Debt to Equity Ratio (Balance Sheet)