![]() Let’s stick with cupcakes for this example. The formula is: (Units of individual product sold x 100) ÷ Total units of all products sold = Percent of total sales volume. Meanwhile, the percentage formula calculates the percentage of units sold of a singular item. This formula may seem like common sense, but it’s useful for tracking changes in the number of units sold, especially if you’re making comparisons across your product line and considering any product discontinuations. If this same bakery wanted a quarterly measurement, it would take the monthly volumes for that quarter and add them together. For example, if a bakery sells 1,000 cupcakes in one month, then the sales volume for cupcakes is 1,000. The unit formula multiplies the number of units by the time period. There are two main formulas for sales volume: the unit formula and the percentage formula. In this next section, we’ll address the primary ways to calculate sales volume, take a look at sales volume variance, and discuss the break-even sales volume method for when things are headed south. The method you choose will depend on what you want to use it for. There are several ways to determine sales volume. From a sales volume point of view, Product A had a higher success rate amongst customers and benefited more in marketing than Product B, which means it should be pushed further.īalancing the perspectives of finances and sales volume is key to making smart product decisions. Taking money out of the equation, 700 units of Product A were sold and 300 units of Product B were sold. Product B appears to be more valuable to the company, so you might think it’d be wise to cut back production on Product A.īut sales volume analysis on the same products paints a different picture. ![]() Financial analysis says that Product A brought in $3,500 of revenue and Product B brought in $6,000. In one month, you sell 700 units of Product A and 300 units of Product B. Let’s say your company sells two products: Product A is worth $5, and Product B is worth $20. But the truth is that the two are heavily linked, and both need to be analyzed on the path to success. You might think that sales volume isn’t important as long as you’re tracking your company’s financial growth. It’s a great tool to help you understand your sales metrics in regards to customer preference, inform your sales data, and assist in sales forecasting. But sales volume can still inform a large number of sales decisions for your team. For that, you’d need to utilize the total revenue formula. Your sales volume alone won’t indicate much in the way of revenue or net sales. Investors frequently look at sales volume to assess the health of a growing or contracting company. This period could be a month, a quarter, or a year depending on what level of sales volume you’re seeking to analyze. If the overall demand continues to move up slowly in the remaining days of March, the aluminium foil consumption may remain poor for the first half of 2023 and so the operating rates of aluminium foil producers.Sales volume refers to the number of units your company sells during a specific reporting period. Many aluminium foil companies said the order volume and their output grew, but at the same time, due to the approaching peak season, market participants underwent a wait-and-watch sentiment.Īccording to some aluminium foil companies, their operating rates can barely grow in the near term, given a slow improvement in new orders. The monthly increase in China’s aluminium foil operating rate could be attributed to the upcoming peak season. On an annual calculation, the operating rates decreased sharply by 4.90 percentage points. The average operating rates of China’s aluminium foil producers also increased month-on-month in February 2023 standing at 73.63 per cent, up by 0.93 percentage point. But several industry players pointed out the market demand was weaker in February compared to the same period of previous years, so it is to be seen if the downstream demand grows in March. SMM estimates the production and sales of aluminium plate/sheet and strip will grow further in March as the peak season arrives. At the same time, the inventory of finished products held by many companies decreased sharply from the previous month. ![]() In February, aluminium plate/sheet and strip production grew, along with the downstream orders owing to the peak season ahead. But on a year-on-year basis, the operating rates edged a significant downfall of 14.26 percentage point. ![]() According to the Shanghai Metals Market survey, the average operating rates of China's domestic aluminium plate/sheet and strip producers stood month-on-month higher by 0.62 percentage point at 63.15 per cent during February 2023.
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