breakeven time

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Breakeven Time

The length of time for the discounted value of future cash flow from an investment to equal the cost of making the investment. That is, if one spends $1,000 buying a stock, the breakeven time is the time it takes for the investor to make at least $1,000 from that stock. A longer breakeven time equates to higher risk for the investment.

breakeven time

The number of years a convertible security must be held in order for its extra current income to cover the excess of its market price over its value in terms of common stock (that is, annual interest on the bond minus annual dividends on the stock). For example, a 10% coupon bond selling for $1,000, convertible to common stock with a market value of $600 and paying no dividend, would have a breakeven time of $400/$100 , or 4 years.
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Again, European and North American companies are quite comparable in their corporate performance on new-product breakeven times, and Japanese firms lag in this dimension too, perhaps reflecting poor Japanese overall economic performance in recent years.
Reported changes in new-product breakeven times between two surveys (percentage of companies, normalized).
And this high CEO involvement correlates strongly and significantly at the global level, with the strongest correlates found among the North American firms, with key corporate competitive measures such as technology leadership and decreased breakeven time (both measures to be defined later).
Strategically, R&D Intensity also correlates strongly with overall newness of the firm's technology, but it relates negatively to improving breakeven time and to perceived competitive performance in satisfying manufacturing.
We examined the correlates of decreases in breakeven time and found several with statistically significant indicators.
Again, those concerned with data consistency in the study will be pleased to know that for the entire sample there are strong correlations among the responses in regard to decreased breakeven time, improved time to market, perceived R&D timeliness, meeting target dates for product/service commercialization, and meeting target dates for process implementation (albeit each of these is a separately measured concept).
In addition to the service benefits, the projects delivered hard savings, with breakeven times measured in weeks.