Breakeven Analysis

Break even Analysis in Strategic Focus

Break even analysis looks at the relationship between revenue and costs. At break even point revenue equals the costs associated with getting the revenue.

Strategic Focus includes tools for financial forecasting of cash flow statements, profits, balance sheets, valuations and break even analysis.

Break even analysis for profitability and more

The software determines the break even for Profitability. NOPAT, EVA and Net Cash.

For example, say Profitability is 23%. A breakeven analysis calculates the % decrease in revenue to achieve a Profitability of 0% ie zero percent.

The breakeven is calculated for both a price and volume change to revenue.

Break even is also reported for Cost of sales and Expenses. In other words  “what is the % increase in expenses necessary to achieve a Profitability of zero percent”.