Crisis indicators and break-even: break-even point, ratios and signals
Crisis signals and break-even point
Is my company at risk of a crisis? The indicators to watch
This tool calculates the break-even point, the safety margin and operating leverage and sets them beside the sector crisis ratios of the Italian accountants’ council (CNDCEC), the six-month DSCR, the signals of article 3(4) of the Italian insolvency code and the thresholds for qualified public creditors. If you filled in the budget in the same browser, the data comes from there.
The indicators
How the calculation works
The break-even point
The economic break-even is fixed costs plus financial charges divided by the contribution margin ratio. Operating break-even, cash break-even (without depreciation), the safety margin and operating leverage are also calculated.
Sector ratios and DSCR
For the sector you choose, among the ten in the CNDCEC paper on crisis warning indices (October 2019), five ratios are compared with the thresholds: financial charges to revenue, equity to debt, short-term assets to short-term liabilities, cash flow to assets, social security and tax debts to assets. The six-month DSCR compares expected cash flows, liquidity and available credit lines with the debt to be repaid.
Legal signals and the bank view
Article 3(4) of Legislative Decree 14/2019 lists overdue debts to employees, suppliers and banks; article 25-novies sets thresholds for the social security institutes, VAT and the tax collection agent. The bank view (DSCR from 1.1, net debt to EBITDA, arrears over 30 days) is practice described in accountants’ papers, not a legal threshold.
Assumptions and limits
Reference values
The 2019 ratios are a draft submitted for ministerial approval, not legal thresholds: since 2022 the insolvency code no longer refers to the ratios of article 13. The tool presents them as reference values.
The practical test
The ratio of overdue debt to annual cash flow is shown as a figure, without a legal outcome: the thresholds in the executive decree have not been read.
What it is not
It is not an assessment of a state of crisis or an opinion. The outcome uses neutral wording (within reference values, to keep an eye on, worth a closer look) and depends on the data entered.
Notice and sources
This is an indicative simulation and does not replace professional advice: results depend on the data entered. Data stays in your browser; a button deletes what was saved to prefill the other tools. The tool is available in English, while the legal references are to Italian law.
Last legal check: 7 November 2026. Sources: Legislative Decree 14/2019 (insolvency code) arts. 2, 3, 25-octies and 25-novies; CNDCEC, Crisi d’impresa. Gli indici dell’allerta (20 October 2019); CNDCEC and FNC, Il budget di tesoreria (19 May 2026) and papers on bankability and the 30-day past due rule.
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Frequently asked questions
What does the “Crisis indicators and break-even: break-even point, ratios and signals” tool do?
This tool calculates the break-even point, the safety margin and operating leverage and sets them beside the sector crisis ratios of the Italian accountants’ council (CNDCEC), the six-month DSCR, the signals of article 3(4) of the Italian insolvency code and the thresholds for qualified public creditors.
How does “Crisis indicators and break-even: break-even point, ratios and signals” work?
The economic break-even is fixed costs plus financial charges divided by the contribution margin ratio. Operating break-even, cash break-even (without depreciation), the safety margin and operating leverage are also calculated.
What assumptions and limits does “Crisis indicators and break-even: break-even point, ratios and signals” have?
The 2019 ratios are a draft submitted for ministerial approval, not legal thresholds: since 2022 the insolvency code no longer refers to the ratios of article 13. The tool presents them as reference values.
Does “Crisis indicators and break-even: break-even point, ratios and signals” replace professional advice?
This is an indicative simulation and does not replace professional advice: results depend on the data entered. Data stays in your browser; a button deletes what was saved to prefill the other tools. The tool is available in English, while the legal references are to Italian law. Last legal check: 7 November 2026. Sources: Legislative Decree 14/2019 (insolvency code) arts.