How To Calculate The Share Of Sales

Table of contents:

How To Calculate The Share Of Sales
How To Calculate The Share Of Sales

Video: How To Calculate The Share Of Sales

Video: How To Calculate The Share Of Sales
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In trade and services, the indicator "share of sales" is often used, which most fully characterizes the position of a particular enterprise in the market. The term has another name - specific gravity. The second option is considered more accurate and therefore is most often used in the field of economics.

How to calculate the share of sales
How to calculate the share of sales

Instructions

Step 1

Assess the scale of the work. The share of sales is a percentage, the calculation of which can be made both for the industry as a whole, and within the framework of a single enterprise. If we consider, for example, a retail store, then the indicator is usually used to assess the competitive environment, and is also used as a comparison value for the sales of product groups in the assortment list.

Step 2

Prepare the required information. Internal reports of financial and economic activities, as well as information from official statistical compilations, are used as the main source. Remember that correct calculations depend on the availability of reliable data. Therefore, you should not take unverified information from the first Internet site that comes across as a basis.

Step 3

Use the formula: y = v1 / v2 * 100, where y is the specific gravity (in%); v1 is the indicator to be compared (i.e., the share of which must be found); v2 is the indicator with which the comparison is made. For example, if you need to know the specific weight of a particular assortment unit of the store, then for this it is necessary to correlate the amount of the selected goods to the turnover as a whole.

Step 4

Indicate the parameters of interest for the calculation. There are various variations for finding the share of sales, their choice depends on the purpose of the analysis. So, the specific weight can be determined: • In current and comparable prices (in the first case, the real value of the goods at which they are sold in the second is taken as the starting point - the price is indicated without allowances); • At different time intervals (as the most popular the year, quarter, month is used, but other options are also possible); • In relation to the indicators of the previous or base period; • Based on internal and external information.

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