Definition

Noun: The state or health of monetary resources, assets, and obligations. It describes the overall situation of finances, whether for an individual, a company, or another entity, often assessed through factors like solvency, liquidity, debt levels, and profitability.

Usage

The term "financial condition" is used to formally describe and evaluate economic standing. It is commonly found in business reports, loan applications, economic analyses, and personal finance planning. It is a neutral term that can describe a good, poor, stable, or deteriorating state.

Examples

• The company's strong financial condition allowed it to secure a loan easily.
• Before investing, analysts thoroughly examined the corporation's financial condition.
• A sudden medical emergency can worsen a family's financial condition.
• The annual report details the bank's financial condition as of December 31st.

Advanced Usage

• "To be in sound/firm financial condition": To be financially healthy and stable.
  • Despite the recession, the university remained in sound financial condition.
• "To assess/evaluate the financial condition": To formally review and judge the state of finances.
  • The auditor's job is to assess the financial condition of the municipality.

Variants and Related Words

• Financial standing (n): A very close synonym, often used interchangeably with "financial condition."
• Fiscal health (n): A similar term emphasizing the wellness or soundness of finances.
• Economic situation (n): A broader term that can include general economic factors affecting an entity.

Synonyms

• Fiscal state
• Economic position
• Monetary status

Antonyms

• Financial insolvency (specifically denotes an extremely poor condition of being unable to pay debts)
• Bankruptcy (a legal state of being unable to repay debts)

Related Phrases

• Statement of financial condition: A formal document, like a balance sheet, that presents the assets, liabilities, and net worth at a specific point in time.
  • The loan officer requested a personal statement of financial condition from the applicant.

Noun

1. the condition of (corporate or personal) finances