- Measures capacity to make debt payments
- Generally favorable: higher result
- Measure of: solvency
- 1.0x is considered “break even”, 1.2x is generally considered minimally acceptable
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Recommended Tools
One of your top priorities as a small business owner is keeping a close eye on the money you bring in and pay out, which is why it’s critical to have the right accounting software. You need a program that helps you accomplish your daily accounting tasks. Here are our best picks for tools we recommend and use.
