Breakeven Point - What do you mean by financial break even point?

Q: What do you mean by financial break even point?

Financial breakeven point is a point where earnings before income tax (EBIT) is equal to financial cost of a firm (or) earnings per share (EPS) is equal to zero.

Answer

When a company's financial expenditures are equal to its financial earnings (EBIT) or when profits per share (EPS) are zero, it has reached its financial breakeven point.

Breakeven Point - What do you mean by financial break even point?

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