Cash flow break-even point

Cash flow break-even point

The point below which the firm will need either to obtain additional financing or to liquidate some of its assets to meet its fixed costs.

Cash Flow Break-Even Point

The cash flow necessary to cover costs and prevent a firm from operating at a loss. The break-even point may be relatively stable or it may fluctuate, depending on the company or industry. Companies with high break-even points tend to have large fluctuations in earnings from year to year.
References in periodicals archive ?
With this acquisition, we believe the provided volume will move the operation to the cash flow break-even point ahead of plan.
Through the internal cost actions and renegotiated contracts we have significantly lowered our monthly cash burn rate and shortened the time to our cash flow break-even point," added Patricia Tikkala, Motient's CFO.
My initial focus will be to bring the company to a cash flow break-even point and then begin planning for the future.