Margin Of Safety

frenzyfeltonfrenzyfelton New MemberPosts: 14Registered
Hi there does any more have an easy way of calculating margin of safety ?

As its driving me crazy, I just dont seem to be getting it to stick in my head !

Any help would be appreciated

Cheers

Comments

  • megs-1984megs-1984 Just Joined Posts: 3Registered
    current output - breakeven / current output x 100/1 = margin of safety %

    example
    700 current output - 500 breakeven = 200 units

    200units / 700units x 100/1 = 29%
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