Financial modelling terms explained

Break-Even Analysis

The break-even analysis is a technique used by businesses to determine the point at which revenues equal expenses. This point is the break-even point, and it is the minimum amount of sales a company must generate to cover all its expenses.

What Is Break-Even Analysis?

Break-even analysis is a technique that is used to determine the point at which a company will no longer lose money, but will not yet start making a profit. The analysis calculates the point at which the company's revenues will equal its expenses. This analysis is important for companies that are not yet profitable, as it can help them to determine the changes that need to be made in order to reach the break-even point.

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