Margin Of Safety

frenzyfelton

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

megs-1984

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%