Bookkeeping

Break-Even Point Formula, Methods to Calculate, Importance

Get instant access to video lessons taught by experienced investment bankers. Learn financial statement modeling, DCF, M&A, LBO, Comps and Excel shortcuts. There is no net loss or gain is purchase return a debit or credit at the break-even point (BEP), but the company is now operating at a profit from that point onward. Why …

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Book Value Per Common Share BVPS: Definition and Calculation

If we assume the company has preferred equity of $3mm and a weighted average share count of 4mm, the BVPS is $3.00 (calculated as $15mm less $3mm, divided by 4mm shares). Another way to increase BVPS is for a company to repurchase common stock from shareholders. Assume XYZ repurchases 200,000 shares of stock, and 800,000 …

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Income Statement Analysis: How to Read an Income Statement

Using an income statement to demonstrate a consistent history of income and profitability can make this process easier. When used in conjunction with the other financial statements, an income statement can give you a clear view of your cash flow. The income statement serves as a tool to what does janitorial expense means understand the …

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