You will need
  • Sales information, calculator, computer
Analyze the dynamics and structure of sales of products. For this, observe how the number of units of product purchased during the reporting period. Compare the received data with the previous or base period. The result may be a conclusion about the growth, decline or stability of sales. Identify the rate of revenue growth by dividing the data for the current period to historical data. Find out what number of products were sold on credit.
Rate the evenness of sales. To do this, define the coefficient of variation or irregularity. The smaller value is, the more evenly distributed sales periods.
Identify critical sales volume. This figure shows at what number of products sold, the company will cease to be unprofitable, but yet will not start to make a profit. To do this, fixed costs should be divided into the level of marginal income.
Determine the profitability of sales. It represents the profitability of your enterprise and the feasibility of its existence. Profitability is calculated by dividing the profit from sales revenue from them. This indicator should be analysed in dynamics. It shows how much profit brings every ruble of revenue.
Analyze the sales growth rate of competitors. This will allow you to identify its position in the market and strengthen the company's position in the future.
Identify the causes of the decline in sales, if any. Most of them are an approximation of the product life cycle by the end of high competition in this sector of the market, glut in the market. Depending on the cause, the company must either start production of a new product or build on your strengths or to enter new segments of the market. Timely decision can save you from a further decline in sales.