Breakeven Multiple
The Breakeven Multiple is the number that needs to be multiplied in order to reach the company's Breakeven Point. The Breakeven Point is the point at which the company's total revenue equals its total costs. The Breakeven Multiple is used to determine how much revenue a company needs to generate in order to cover its costs. It is also used to assess the financial health of a company. A high Breakeven Multiple indicates that a company is generating a lot of revenue relative to its costs. A low Breakeven Multiple indicates that a company is not generating enough revenue to cover its costs. |