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Break Even

1. To make the sales or revenues necessary to cover costs and prevent a firm from operating at a loss. The breakeven may be relatively stable or it may fluctuate, depending on the company or industry. Companies with high breakevens tend to have large fluctuations in earnings from year to year.

2. To sell a security at a price that causes the seller to neither make a profit nor lose money on the sale.


1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations in earnings.
2. The price at which a security position can be closed out with no profit or loss.
References in periodicals archive ?
While the DSD market has shown recent improvement and operational issues appear to be improving, quarterly sequential revenue growth increased only slightly in the fourth quarter and operating performance is still well below the company's break even point.
We anticipate that we will have sufficient cash to get through the break even point.
NextCard recently brought in its break even point to the fourth quarter of 2001, a full year earlier than originally planned.
Without the significant, non-recurring expenses incurred by Dauphin during 1999, the addition of ADD would have brought the combined results of operations to a break even point," stated Christopher L.
Nada has moved his estimated operating break even point forward five quarters and revised his operating earnings per share estimate for fiscal 2000 from ($0.