Definition for : Breakeven

Breakeven is the point at which total Revenues cover total Charges. With business running at this level, Earnings are thus zero. Breakeven depends on the Cost structure (Split Variable costs/Fixed costs). There are three different breakevens: Operating breakeven, Financial breakeven, and Total breakeven. Breakeven is affected by company's industrial and financial strategy.

(See Chapters Chapter 10 Margin analysis: risks, Chapter 27 Measuring value creation and Chapter 36 Returning cash to shareholders of the Vernimmen)

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