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Break-even Analysis

Learn how to use this integral financial tool to predict business profitability.

  • Duration

    2 weeks
  • Weekly study

    8 hours

Discover how companies work out how to cover their costs

Every company runs different financial analyses before making investment decisions.

How do you know when a business will start to make a profit? Can you ever predict the risk of potential loss? Break-even analysis assures that, in the short term, the company is able to survive.

You’ll become familiar with different classifications of cost and their relationship with business stability. You will also learn how to calculate the break-even point and how its application will help you evaluate the feasibility of business ideas and their potential for success.

What topics will you cover?

  • Identify the definitions of cost and their relationship with business sustainability
  • Gain an understanding of break-even analysis and its method
  • Learn how to calculate the break-even point
  • Get introduced to the concept of margin of safety and its importance
  • Gain an understanding of operational gearing and what this means for a business

Learning on this course

On every step of the course you can meet other learners, share your ideas and join in with active discussions in the comments.

What will you achieve?

By the end of the course, you‘ll be able to...

  • Calculate and apply break-even point, margin of safety and profit
  • Explain the difference between fixed, variable and semi variable costs
  • Describe contribution and explain its importance
  • Explore the concept of operational gearing and explain its importance
  • Evaluate the effect of operational gearing on risk and profit

Who is the course for?

This course would suit anyone looking for additional basic accounting skills. These are skills that can help you make better decisions and advance in your career. It may be of particular interest to people in senior management and leadership roles, who lack an accounting background.

Please note that the staff described in the ‘Who will you learn with?’ section below may be subject to change.

Who will you learn with?

Winfred is a lecturer in Accounting at Coventry University. He presently teaches on various accounting modules and his research interests are in ownership structure developments in emerging markets.

Who developed the course?

Coventry University

Coventry secured 5 QS Stars for Teaching and Online Learning in the QS World University Ranking 2020 and has received No. 1 in the world for Massive Open Online Courses in MoocLab’s World University Ranking 2021.

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  • Location


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