Break even analysis is a calculation of the quantity sold which generates enough revenues to equal expenses.In securities trading, it is the point at which gains are equal to losses. In other words, break-even analysis examines and calculates the margin of safety that’s based on a company’s revenue – as well as related costs of running the organization.
CAGR stands for compound annual growth rate.A widely-used measure of growth, CAGR is used to evaluate anything that can fluctuate in value (such as assets and investments).
Earnings before interest, tax, depreciation, and amortization (EBITDA) is a measure of a company's operating performance.EBITDA is used to evaluate a company's performance without factoring in financing/accounting decisions or tax environments.
Fixed costs are independent expenses that companies must pay, regardless of what their business does.Because they cover expenses that help keep the business up and running, they are sometimes referred to as overhead costs. Fixed costs do not change when goods or services produced or sold by a company move up or down.
Net cash flow is the difference between a company’s cash inflows and outflows within a given time period.A company has a positive cash flow when it has excess cash after paying for all operating costs and debt payments.
Opportunity cost is the return on an investment/opportunity you missed out on, compared to the return on the investment that you chose.To determine what was lost (or gained), opportunity cost may be calculated as a number or a ratio.
Present value (PV) measures the current value of an amount of money – or a stream of cash flows – that is expected in the future.This value will differ from the cash flows’ nominal value, since time itself affects value.
ROI (or return on investment) measures the gain/loss generated by an investment in relation to its initial cost.ROI allows the reader to gauge the efficiency and profitability of an investment and is often used to influence financial decisions, compare a company’s profitability, and analyze investments.