Dækningsforhold

Dækningsforhold, often translated as coverage ratio or contribution margin ratio, is a financial metric used to assess a company's profitability and its ability to cover fixed costs. It is calculated by dividing the contribution margin by the total revenue. The contribution margin itself is the revenue remaining after deducting variable costs. Therefore, dækningsforhold represents the percentage of each sales dollar that contributes to covering fixed expenses and generating profit.

A higher dækningsforhold indicates that a larger portion of sales revenue is available to cover fixed costs, which is generally a positive sign for a business. Conversely, a lower ratio suggests that a greater amount of sales is needed to reach the break-even point. Analyzing dækningsforhold over time can reveal trends in pricing strategies, cost management, and product mix. Businesses often use this metric to make informed decisions about pricing, cost reduction efforts, and sales volume targets. It is particularly useful in break-even analysis, helping to determine the sales level required to avoid losses. Understanding dækningsforhold is crucial for effective financial planning and performance evaluation.