Entrepreneurship

How to calculate the share of sales

How to calculate the share of sales

Video: How To Calculate Market Share in Excel 2024, July

Video: How To Calculate Market Share in Excel 2024, July
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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 on 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.

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Instruction manual

1

Rate the scale of work. The share of sales is a percentage ratio, the calculation of which can be made both in the industry as a whole and within 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 of sales of product groups in the assortment list.

2

Prepare the necessary information. As the main source, internal reports of financial and economic activities, as well as information from official statistical collections are used. Remember that the accuracy of the calculations depends on the availability of reliable data. Therefore, you should not take as a basis unverified information from the first available website.

3

Use the formula: y = v1 / v2 * 100, where y is the specific gravity (in%); v1 is the indicator to be compared (that is, the proportion of which needs to be found); v2 is the indicator with which to compare. For example, if you need to find out the specific gravity of a particular assortment unit of a store, for this it is necessary to correlate the amount of selected goods to the total turnover.

4

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

Calculation of the share of sales by region

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