Cash Flow Coverage Ratio

/Cash Flow Coverage Ratio

Cash Flow Coverage Ratio

  • 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

Cash_Flow_Coverage_Ratio

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By | 2018-01-22T10:23:40+00:00 August 29th, 2015|0 Comments

About the Author:

John Gillingham is a CPA and Accounting App Developer in San Francisco, California. Check the iOS App Store for Accounting Flashcards and the Debits & Credits Game. On Android: Learn Accounting Flashcards. Also on Kindle and iBooks.

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