Solvency is difficult to assess due to the relation

  Solvency is difficult to assess due to the relation of not being able to determine the L-T Debt capital of a company within a better means that doesn’t allow the leading risk towards defaulting on company obligations. When dealing with solvency, the risk associated with this default on long-term debt capital repayment creates difficulties when being analyzed due to there being various types of risk continuously arising with an ever-changing market condition. Thus, a market can never be predicted in advance.