Step 2: Compare monthly sales of the product with the average for the period
Posted: Sun Dec 22, 2024 7:56 am
We now have the opportunity to compare monthly sales figures. But what value should be taken as the norm or standard? For example, in May, crackers were sold out in 19 days, and in February – in 28, so we conclude that the first month was better than the second. But in terms of sales, we have no idea how much was lost in February and how much was gained in May.
Thus, it is necessary to have some specific benchmark – it is the average turnover rate. Based on it, you can draw conclusions about whether the month was successful in terms of saudi arabia mobile number sales or not.
What do we need for this? To determine the average number of packs of crackers lying in the warehouse for six months, we need to calculate:
average inventory for 6 months;
number of days in a half year;
how many packs were sold during the analyzed period.
How to calculate sales speed correctly? If you take the price from the shelf, the turnover indicator may be incorrect, and your conclusions may be erroneous. As a result, warehouse stocks may be either excessive or insufficient.
Let's calculate the average supply of crackers for six months:
Average inventory for the period = ((TI1 / 2) + TI2 + ... + (TIn / 2) / (n – 1),
Where:
TS – inventory on a specific date;
n – the number of dates in the selected period. If we analyze data for 6 months, then n = 6.
Average inventory for 6 months in rubles:
Month Stock on the last day of the month Data in the formula
January 874 874/2 = 437
February 874 874
March 76 76
April 228 228
May 210 210
June 646 646/2 = 323
Total items in stock 2 148
Number of months to calculate (n) 6 – 1 = 5
Average stock of goods for 6 months 429.6
Purchase price 18.2
Average stock of goods in packs 429 / 18.2 = 24
The table shows that the average stock of chips for six months is 24 packages.
We calculate how many packs were sold in six months:
Month Number of packs sold, pieces
January 24
February 20
March 41
April 36
May 15
June 23
Total sold in 6 months 159
We calculate the number of days from January to June: 181;
We calculate the average turnover rate in days:
Inventory turnover in days = Average inventory * (Number of days / Sales volume).
Substituting the available data into this formula, we obtain the average turnover of goods from January to July:
24 * 181 / 159 = 27 days.
Calculation of the average turnover rate
What does it mean?
The graph shows that the average supply of 24 packs of crackers is sold out in an average of 27 days.
Comparing this indicator with turnover on a monthly basis, we can see that the winter months are unlucky. During this period, too large a batch of crackers was purchased, the goods lay unclaimed in the warehouse and did not work off the funds invested in them. Since the beginning of spring, purchasing power has increased, so it was necessary to order more goods.
How to use the information received correctly?
To avoid storing surpluses in the warehouse in January and February, do not purchase in batches larger than the average. From March, this amount will not be enough, so you need to order a larger quantity. The guideline in this case is the average number of packs sold for the period from March to June, namely 29 pieces. Knowing the average turnover rate, it becomes clear in which periods sales were great and in which - poor.
Thus, it is necessary to have some specific benchmark – it is the average turnover rate. Based on it, you can draw conclusions about whether the month was successful in terms of saudi arabia mobile number sales or not.
What do we need for this? To determine the average number of packs of crackers lying in the warehouse for six months, we need to calculate:
average inventory for 6 months;
number of days in a half year;
how many packs were sold during the analyzed period.
How to calculate sales speed correctly? If you take the price from the shelf, the turnover indicator may be incorrect, and your conclusions may be erroneous. As a result, warehouse stocks may be either excessive or insufficient.
Let's calculate the average supply of crackers for six months:
Average inventory for the period = ((TI1 / 2) + TI2 + ... + (TIn / 2) / (n – 1),
Where:
TS – inventory on a specific date;
n – the number of dates in the selected period. If we analyze data for 6 months, then n = 6.
Average inventory for 6 months in rubles:
Month Stock on the last day of the month Data in the formula
January 874 874/2 = 437
February 874 874
March 76 76
April 228 228
May 210 210
June 646 646/2 = 323
Total items in stock 2 148
Number of months to calculate (n) 6 – 1 = 5
Average stock of goods for 6 months 429.6
Purchase price 18.2
Average stock of goods in packs 429 / 18.2 = 24
The table shows that the average stock of chips for six months is 24 packages.
We calculate how many packs were sold in six months:
Month Number of packs sold, pieces
January 24
February 20
March 41
April 36
May 15
June 23
Total sold in 6 months 159
We calculate the number of days from January to June: 181;
We calculate the average turnover rate in days:
Inventory turnover in days = Average inventory * (Number of days / Sales volume).
Substituting the available data into this formula, we obtain the average turnover of goods from January to July:
24 * 181 / 159 = 27 days.
Calculation of the average turnover rate
What does it mean?
The graph shows that the average supply of 24 packs of crackers is sold out in an average of 27 days.
Comparing this indicator with turnover on a monthly basis, we can see that the winter months are unlucky. During this period, too large a batch of crackers was purchased, the goods lay unclaimed in the warehouse and did not work off the funds invested in them. Since the beginning of spring, purchasing power has increased, so it was necessary to order more goods.
How to use the information received correctly?
To avoid storing surpluses in the warehouse in January and February, do not purchase in batches larger than the average. From March, this amount will not be enough, so you need to order a larger quantity. The guideline in this case is the average number of packs sold for the period from March to June, namely 29 pieces. Knowing the average turnover rate, it becomes clear in which periods sales were great and in which - poor.