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Related to breakeven: Break even analysis

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 ?
Fitch's 'AAA' breakeven AP for the covered bond rating will be affected, among others, by the profile of the cover assets relative to outstanding covered bonds, which can change over time, even in the absence of new issuance.
For 2014, the external breakeven oil prices are expected to remain below $60 per barrel in all the GCC countries, except Oman ($84).
We estimate the breakeven price of an energy crop under two alternative assumptions about the risk preferences of the landowner.
For the GCC, the average budget breakeven price stands at a manageable $77 per barrel," notes a Deutsche Bank report.
The company claimed the breakeven results in the second quarter of 2010 include USD4.
However, a closer look suggests that this was not the only factor at play as forward breakeven rates - which can be used to gauge investors' inflation expectations for the years ahead - have also come down.
If the breakeven analysis indicates 1,200 units are needed and comparable franchise locations sell 1,000 items monthly, the project it may not be feasible.
There is a fairly straightforward set of formulas that pulls in breakeven with contribution per order and can even account for the first-year payback to ultimately answer the question of whether a certain $/book is acceptable or not.
Eventually, use of the expert reports would translate into raising the breakeven point for settlement purposes because adjustors would have to reevaluate the low offers they would ordinarily make.
hotel industry overall achieves breakeven occupancy at approximately 55.
If you want breakeven point in dollars, use CM ratio instead of unit CM in the denominator.