CFO Edge Logo
  Home > Resources > Break-Even Analysis Article  

Using Break-Even Analysis to Determine Your Company’s Financial Health

  Arthur F. Rothberg, Managing Director, CFO Edge, LLC  
  Open as PDF Open the entire article as a PDF  
  Article Summary  
Determining the break-even point is crucial to determining margins, which, in turn, aid in financial planning for the next year. Break-even analysis determines both the minimum amount of sales required to avoid a loss or to “break-even” at the end of the fiscal year and permits you to adjust sales estimates accordingly.

This article reviews the break-even analysis process by discussing elements like the following: fixed costs, variable costs, units, selling price, sales estimates, revenue, profits, and margins. Primary sections address cost components of break-even analysis, the margin of safety, and contribution margin analysis.

The break-even process is invaluable in assessing the financial health of your company. Los Angeles CEOs and CFOs who feel that they do not have the internal expertise or bandwidth to conduct a break-even analysis can benefit significantly from consulting with an outsourced CFO services firm. A professional services firm of this nature can lend their expertise to your financial analysis and provide an objective report for your use.

  Open the entire article as a PDF  
Subscribe to CFO Inside Edge

Our monthly newsletter delivers first notice of new white papers and articles plus remarks on performance challenges and solutions. View past issues and subscribe.

CFO or Controller: What's Right for Your Business?
White Paper
CFO or
What's Right
for Your
Outsourced CFO Services
White Paper
CFO Services
Performance Measurement
White Paper
Performance Measurement
Strategic Planning & Forecasting
Year-End Strategic Planning & Forecasting
Planning a Business Exit White Paper
White Paper
Planning a
Business Exit
CFO Edge Blog CFO Edge on Twitter CFO Edge on LinkedIn
Intuit Certifications