prisdekning

Prisdekning refers to the ability of a company's revenue to cover its costs. It is a fundamental concept in business economics and financial analysis. A company achieves prisdekning when its total income from sales and other operations is sufficient to pay for all its expenses, including fixed costs like rent and salaries, and variable costs like raw materials and production. If revenue exceeds costs, the company is profitable. If costs exceed revenue, the company is operating at a loss.

Analyzing prisdekning is crucial for assessing a company's financial health and sustainability. It helps determine the minimum sales volume or price level required to avoid losses. Companies often aim to increase their prisdekning by boosting sales, reducing costs, or a combination of both. A healthy prisdekning is a prerequisite for long-term growth and investment, as it allows for the reinvestment of profits and the ability to weather economic downturns. Different industries may have varying benchmarks for acceptable levels of prisdekning due to differences in cost structures and market dynamics.