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What are we talking about? Turnover analysis is the collection and decoding of data, the use of formulas to calculate the indicators of receipt and sale of goods for the reporting period. It is carried out for the purpose of forecasting sales, assessing demand, and optimizing the stages of implementation.
How to conduct? This is a step-by-step process, where taiwan business email list the volume, dynamics and structure of trade turnover are analyzed. The most accurate, aimed at a long-term strategy is a factor analysis of trade turnover, taking into account external and internal factors of influence.
In this article:
The concept of trade turnover
Instruments for control and accounting of trade turnover
Calculation of the volume of trade turnover
Tasks of turnover analysis
Factors Affecting Trade Turnover
Stages of analysis of the company's turnover
Example of turnover analysis
Factor analysis of trade turnover
Frequently asked questions about turnover analysis
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The concept of trade turnover
First, let's look at the basic definition of turnover, which expresses the total sales of an organization for a certain period in monetary or physical terms. The term "turnover" is used in economic theory.
The same meaning is used in situations where we are talking about the turnover cycle of finished products, raw materials or materials that will be sold in the process of concluding commercial agreements.
The economic analysis of turnover and the coverage of all categories of species, including food and non-food sectors, make up the structure of gross profit, which is a key financial parameter for the analysis of the operating activities of a particular company.
The volume of trade turnover is determined by several components:
money invested in goods is called working capital;
revenue is the total amount of funds received from the sale and distribution of goods;
volume - the amount of products that pass through a firm over a period of time;
Product turnover is the time that passes between the purchase and sale of goods, this is the speed with which an entrepreneur gets the money invested in the goods back into the cash register;
Profit is the difference between revenue and working capital expended per unit of time.
The concept of trade turnover
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Turnover is a process that begins with the purchase of goods from suppliers, manufacturers or wholesalers. If it is ongoing and active, it means that the goods are not stored on the shelves for a long time. Product turnover characterizes the speed of turnover. The value of product turnover is a determining factor in the speed of turnover.
Trade turnover includes a number of stages:
initial stage - purchasing goods from a partner. After the first transaction, interaction with the supplier begins;
payment for goods. Several payment options are used:
payment upon receipt, when payment for the goods is made immediately upon their receipt;
prepayment - payment before delivery and with a delay;
sale of goods to the end consumer.
For effective turnover, it is important to have a diverse assortment. The assortment composition reflects the share occupied by each product.