eLearnAfrica
Break-Even Analysis Unlocked: How to Understand the Profit and Loss Statement
Coventry University
  • Start Date: 18 Jul, 2022
  • 2 weeks
  • Study Content: Videos


Find out how to predict business profitability, the break-even point and the margin of safety with powerful financial tools.

Course Fee: Free
Certificate Cost: See Fees and Eligibility
Enrol Now

Course Description

This course is made available through the eLearnAfrica and FutureLearn partnership.

How do you know when a business will become profitable? And can you predict business risk and potential losses? Every successful company runs different financial analyses before making investment decisions. Break-even analysis helps these companies to ensure their survival in the short term.


On this course, you’ll have the opportunity to cover everything that a comprehensive break-even analysis entails. You’ll have the chance to learn how to understand the different classifications of cost and how they relate to business stability.


You’ll also find out how to evaluate the feasibility of business ideas and their potential for success by calculating and applying the break-even point, or BEP.


Learn how to read a profit and loss statement


Want to know how to analyse a profit and loss (P&L)? This course will teach you what you need to know about the P&L statement – from sources of income and sales and seasonality to the all-important bottom line: net profitability.


Find out how to calculate margin of safety


What is the margin of safety? Simply put, it’s the amount that sales can fall before the break-even point is reached and the business makes no profit. This calculation also tells a business how many sales it has made over its BEP.


This course explores the principles of margin of safety and profit, and look at the output for required profit.


You’ll also carry out exercises on break-even analysis using formulas and templates, and be introduced to operational gearing (or operational leverage) – the relationship between a firm’s fixed and variable costs.


This course is designed for anyone looking to build their financial data analysis and interested in using data for business decision making.


It will be of particular interest to people in senior management and leadership roles who lack an accounting background, especially if you wish to learn the skills to help you make better decisions and advance your career.


You can enhance your learning experience by following related courses, designed by Coventry University:



Certificate cost may vary. You will be redirected to the host page for cost and payment options.

Coventry University

This university is part of the partnership between eLearnAfrica and FutureLearn.

This institution is available on eLearnAfrica through partnership with FutureLearn.

You may be able to download course materials after enrolling in this course. If not, all of the necessary course materials provided by the course instructor will be available on the provider's course page.
COLLABORATION POLICY

By enrolling in a course on or through eLearnAfrica, you are joining a special worldwide community of learners. The aspiration of eLearnAfrica is to provide anyone with an internet connection access to courses from the best universities and institutions in the world and to provide our learners the best educational experience internet technology enables. You are a part of the community that will help eLearnAfrica achieve this goal. eLearnAfrica depends upon your motivation to learn the material and to do so with honesty and academic integrity. In order to participate in eLearnAfrica, you must agree to the Honor Code below and any additional terms specific to a class.

ELEARNAFRICA HONOR CODE PLEDGE

By enrolling in a course, program, or degree hosted on the eLearnAfrica App or Site, I agree that I will:

  • Complete all tests and assignments on my own, unless collaboration on an assignment is explicitly permitted.

  • Maintain only one user account and not let anyone else use my username and/or password.

  • Not engage in any activity that would dishonestly improve my results, or improve or hurt the results of others.

  • Not post answers to problems that are being used to assess student performance.

  • Abide by any and all requirements of the eLearnAfrica Participants as may regard the expectations of civil or academic behavior or of community standards.

VIOLATIONS

If you are found in violation of the Terms and Conditions or Honor Code, you may be subject to one or more of the following actions:

  • Receiving a zero or no credit for an assignment;

  • Having any certificate earned in the course withheld or revoked;

  • Being unenrolled from a course, learning program or degree program; or

  • Termination of your use of the App and/or Site.

  • Additional actions may be taken at the sole discretion of eLearnAfrica and eLearnAfrica course providers. 

No refunds will be issued in the case of any corrective action for such violations.

Honor code violations will be determined at the sole discretion of eLearnAfrica, the Partners, or Members. You will be notified if a determination has been made that you have violated this honor code and you will be informed of the corresponding action to be taken as a result of the violation.

CHANGING THE HONOR CODE

Please note that we review and may make changes to this Honor Code from time to time. Any changes to this Honor Code will be effective immediately upon posting on this page, with an updated effective date. By accessing the App and/or Site after any changes have been made, you signify your agreement on a prospective basis to the modified Honor Code and any changes contained therein. Be sure to return to this page periodically to ensure familiarity with the most current version of this Honor Code.

Effective Date: September 22, 2016