Reading comprehension is a skill that empowers lifelong learning intelligence for a better self.
It’s important to note that..
✅ ..the margin of safety is essentially a cushion that provides a safety net for the business.
✅ ..means that the actual sales of a business are still above the minimum level of sales required to cover its fixed costs or so-called the break-even point.
✅ ..the business is selling above breakeven point, as a result, it is still making profits.
✅ ..a positive sign since the business is still generating enough sales revenue to cover its operating expenses and is not in danger of running the business at a loss.
✅ ..which is more than the margin of safety, that means the sales level falls below the break-even point, and the business will start to incur losses as a result.
✅ ..aim for a margin of safety that is significantly higher than their current level of sales.
✅ ..may still signal that the business is facing some challenges or that there are opportunities for improvement.
✅ ..monitor their sales and profitability, analyse the reasons for any changes, and adjust their strategies accordingly to ensure long-term success.