The Analysis of the Break Even Point in Selected Companies in Crisis Circumstances

Abstract

The research is based on the break-even analysis. The sample consists of three selected companies in the Republic of Srpska, whose financial reports are publicly published on the website of the Banja Luka Stock Exchange. The analysis covers the period from 2018 to 2022. The aim is to examine how companies operated and covered fixed costs during a period characterized by increased levels of uncertainty, risk, and challenges. Therefore, it is necessary to determine the break-even point (BEP-break-even point) for each year individually in each of the three companies, to determine the financial performance of the company in the crisis period. The obtained results indicate that the companies performed positively in the entire analyzed period, but worse financial performance is observed in the period 2020-2024. year in all three companies.