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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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
What happens to the breakeven point if that occurs?
Please note that the above is high level--there are many variables and factors that will change the breakeven point.
But the breakeven point may not come until fiscal 2016 comes to a close, which means March of 2016.
"Hydrocarbon prices will continue to display relative stability, with additional output from countries that are members of the Organisation of the Petroleum Exporting Countries (Opec) offsetting additional demand from emerging markets; while unconventional oil has a high breakeven point that acts as a floor on oil prices," said Lucio Mauro Vinhas de Souza, Managing Director -- Sovereign Chief Economist of Moody's said in Dubai yesterday.
He pointed out that the plan will be presented to the Government upon which the Government will take its decision whether it will be responsible for the company for the next ten years or the company, through its plan, will show its profitability or breakeven point. Commenting on some forecasts that Oman's oil reserves will run out within two decades' time, he said that at the outset of oil production in the 1970s reports projected that the oil reserves would last for 20 years.
According to company spokesman Per-Ake Froberg, this step has been taken to help the automaker save USD232.7m and reach a breakeven point in 2013.
NEWCOMERS Shawbrook Bank have reached breakeven point - 16 months after they were launched.
Selling volumes growth allowed company to come close to the breakeven point in EBITDA terms (-$10m) for the foreign assets segment.
Using the fixed- and variable-cost information provided by this Income Statement, we'll calculate the breakeven point and margin of safety and discuss how these two important numbers can be used in decision making.
However, most of the insurance companies are yet to reach the breakeven point and thus are ineligible for launching an IPO under the present norms.
In a statement, the firm said it hasreached during the second quartera breakeven point on core earnings,ahead of an initial third-quarterdeadline.