What is trade turnover? System of turnover indicators and their analysis

Concept. Retail turnover. Wholesale trade turnover. Features of turnover of food enterprises. Structure of trade turnover. System of turnover indicators. Tasks and methods of analysis and assessment of trade turnover

Concept

One of the main economic indicators of the economic activity of a trading enterprise is trade turnover - the process of exchanging goods for money. The owner of the goods - a trading enterprise * - sells the goods for money into the ownership of another legal entity or individual. Trade turnover characterizes the process of movement of goods through acts of purchase and sale. As an economic category, trade turnover is characterized by the presence of two characteristics simultaneously:

goods as an object of sale;

sales as a form of movement of goods from producer to consumer.

* Sometimes a trading company receives goods on consignment terms, i.e. the enterprise, not being the owner of the goods, on the basis of an appropriate agreement receives from the actual owner the right to sell it.

The turnover of a trading enterprise can be considered:

firstly, as a result of the activities of a trading enterprise, its economic effect;

secondly (in the socio-economic aspect), as an indicator of the commodity supply of the population, one of the indicators of living standards.*

* According to the UN classification, retail trade turnover refers to indicators characterizing the standard of living.

In a trading enterprise, turnover is expressed in the volume of monetary proceeds for goods sold - by its size one can judge the importance of this enterprise in the consumer market.

There are retail and wholesale trade turnover.

Retail turnover

Retail turnover refers to the transfer of goods to final consumers. This completes the process of circulation of goods - it enters the sphere of consumption.

As an economic indicator, retail trade turnover reflects the volume of goods (in monetary terms) moving into the sphere of personal consumption, and characterizes, on the one hand, the monetary proceeds of trade, and on the other, the amount of household expenses for the purchase of goods. The dynamics of retail trade turnover reflects the proportions between production and consumption, the needs of enterprises for material and labor resources, and the development of the retail network.

According to the Instructions of the State Statistics Committee of the Russian Federation*, retail trade turnover is the sale of goods to the population; In addition, retail trade turnover includes the sale of goods to organizations, institutions and enterprises for the populations they serve.

* Instructions for determining retail turnover and inventory by legal entities, their separate divisions, regardless of their form of ownership, engaged in retail trade and public catering. Approved by Resolution of the State Statistics Committee of Russia dated April 1, 1996 No. 25.

Retail turnover as a statistical indicator reflects the volume of sales of goods to the population through all sales channels: in officially registered enterprises, in clothing, mixed and food markets.

The volume of retail trade turnover largely characterizes the state of the national economy, reflecting the state of affairs in industry and agriculture, inflationary processes, changes in the well-being of the population, conditions and capacity of the domestic market.

The indicator of retail turnover (as well as wholesale) has quantitative and qualitative characteristics.

The quantitative characteristic of trade turnover is the volume of sales in monetary terms, the qualitative characteristic is the structure of trade turnover. The structure (or assortment composition) of trade turnover is the share of individual product groups in the total sales volume.

The composition of retail turnover is classified by type of sales:

Revenue from sales of food and non-food products in stores, tents, vending machines, delivery and distribution trade;

Turnover of public catering establishments, consisting of turnover for the sale of products of their own production and purchased goods, including mark-ups;

Revenue from the sale of medicines in pharmacies;

Revenue from the sale of books, newspapers, magazines, including subscriptions, etc.

It is necessary to clearly distinguish between the concepts of “composition” and “magnitude” of trade turnover: the composition of trade turnover consists of various types of sales, and the value is the amount of trade revenue deposited at the bank or cash desk, the volume of small wholesale sales (by bank transfer), expenses incurred at the expense of the cash register revenue (according to documents).

Wholesale turnover

Wholesale trade turnover is the sale of goods by trading enterprises to other enterprises that use these goods either for subsequent sale, or for industrial consumption as raw materials, or for material support of economic needs. As a result of wholesale trade, goods do not pass into the sphere of personal consumption, but remain in the sphere of circulation or enter industrial consumption. In other words, in wholesale circulation, goods are sold for subsequent processing or resale.

Wholesale trade turnover is classified, as a rule, by:

purpose;

form of organization of goods distribution.

Depending on the purpose Wholesale trade turnover is divided into:

wholesale trade turnover;

intrasystem wholesale trade turnover.

Wholesale sales turnover is the sale of goods to retail trade enterprises, public catering, supplies to off-market consumers, for export and through clearing.

Intrasystem wholesale trade turnover is the release of goods by some wholesale enterprises on behalf of others directly to market and intramarket consumers. Intrasystem wholesale trade turnover, as a rule, is used to maneuver commodity resources and is characteristic of large commercial structures.

Thus, wholesale sales turnover characterizes the process of direct wholesale sales of goods, and intra-system wholesale turnover characterizes the movement of goods between wholesale trade links.

The sum of the two types of wholesale trade turnover is the gross wholesale trade turnover.

Depending on the organization of goods distribution Each of the two types of wholesale trade is divided into:

warehouse;

transit.

Warehouse wholesale turnover is the sale of goods from the warehouses of wholesale trading enterprises.

Transit wholesale trade is the supply of goods by manufacturers directly to retailers, bypassing warehouse links.

Transit wholesale trade turnover is in turn divided into:

transit trade turnover without participation in settlements (organized);

transit trade turnover with participation in settlements.

In other words, the trading enterprise participates in this process either as an intermediary who receives a commission for organizing the promotion of goods, or as an owner who pays the cost of the goods.

The sum of warehouse and transit trade turnover with participation in settlements constitutes wholesale trade turnover with participation in settlements.

Features of turnover of food enterprises

A distinctive feature of the economic activities of food enterprises is the integration within one enterprise of the processes of production, sales and organization of consumption of products. Accordingly, the turnover of food enterprises has its own specifics, being divided into:

turnover on sales of products of own production;

turnover on sales of purchased goods.

The largest share in the turnover of food enterprises is the turnover of sales of products of their own production.*

* 55-85% depending on the type of enterprise: restaurant, cafe, canteen, dumpling shop, pancake house, snack bar, bistro, buffet, etc.

Depending on final or intermediate consumption, retail and wholesale trade turnover is distinguished.

Retail turnover includes:

sale of products of own production and purchased goods through dining halls, buffets, as well as sales through retail and small retail networks owned by the enterprises themselves;

sales of products through a mobile network;

supplying meals to company employees at discounted prices.

Wholesale trade turnover, as a rule, consists of the sale of semi-finished products, flour and confectionery products to other food and retail enterprises.

The sum of retail and wholesale trade turnover forms gross trade turnover, which characterizes the full volume of production and trading activities.

Trade turnover structure

The commodity structure of retail turnover includes food and non-food products, which are divided into assortment groups and subgroups. With further detail, types, varieties, models, and sizes of goods are considered.

The structure of food products consists of the following product groups:

meat and meat products;

fish and fish products;

milk and dairy products;

confectionery;

bread and bakery products;

flour, cereals and pasta;

potato;

fruits, fruits, berries, watermelons and melons;

other food products.

The structure of non-food products consists of the following assortment groups:

clothing, linen, hats and furs;

knitwear and hosiery;

laundry soap;

synthetic detergents;

toilet soap and perfumes;

haberdashery and threads;

tobacco products;

goods for cultural, household and household purposes;

other non-food products.

Trade turnover indicator system

Indicators characterizing the turnover of a trading enterprise include:

volume of trade turnover in value terms at current prices;

volume of trade turnover in value terms at comparable prices;

assortment structure of trade turnover for individual groups of goods (rubles, percent);

one-day turnover volume (RUB);

volume of trade turnover per employee, including trade group employee;

volume of trade turnover per 1 m 2 of total area, including retail space;

time of circulation of goods, days of circulation;

speed of turnover, number of revolutions.

Tasks and methods of analysis and assessment of trade turnover

Tasks of trade turnover analysis:

studying the dynamics of the indicator;

analysis and assessment of assortment structure;

identification and assessment of factors influencing the volume and structure of trade turnover;

turnover analysis.

Analysis methods:

construction of time series;

use of relative and average values;

comparison;

index method;

building trend and regression models of dynamics;

chain substitution;

balance sheet linkage of indicators;

plotting, etc.

The analysis of trade turnover begins with determining its volume (in value terms or in physical terms) for the period under study. The obtained data (reporting) is compared with planned indicators and with indicators (basic) of the corresponding previous time intervals (decade, month, quarter, half-year, year). Such comparisons make it possible to assess the degree of compliance of the actual results of the enterprise’s activities with the planned development strategy.

In the process of analyzing the dynamics of trade turnover, a system of indices is used:

index of physical volume of trade turnover ( I f);

trade turnover index in actual (current) prices ( I T);

price index ( I c).

Index of physical volume of trade turnover characterizes the impact of changes in the quantity and structure of goods sold on the dynamics of the indicator.

The index is calculated using the formula:

Where - price i-th product in the base period;

-price i-th product in the reporting period;

-quantity i-th product sold in the reporting period;

-quantity i-th product sold in the base period;

i- type of product;

P - number of types of goods.

Trade turnover index in actual (current) prices reflects the change in the total cost of goods sold during the analyzed period. The state of the indicator is influenced by two factors - the number of goods sold and price dynamics. The index is calculated using the formula:

Usage price index in the analysis of trade turnover in conditions of a noticeable influence of inflationary processes on the economic life of the country, which led to high rates of depreciation of money and rising prices, acquires exceptional importance. A price index shows the change in the total cost of a certain number of goods during the period under review. The index is calculated using the formula:

There is a mathematical relationship between the considered indices:

Example.

Initial information for calculations

Let's calculate:

index of physical volume of trade turnover I f == (5 x 300 + 8 x 50) : (5 x 200 + 8 x 100) = (1900: 1800) = 1.055;

trade turnover index in actual (current) prices I t = (6 x 300 + 12 x 50) : (5 x 200 + 8 x 100) = (2400: 1800) = 1.333;

price index I c = (6 x 300 + 12 x 50) : (5 x 300 + 8 x 50) = (2400: 1900) = 1.263.

Let's check the previously derived relationship between the studied indicators: I f= I T: I c, or 1.055 = 1.333: 1.263.

Using the method of chain substitution, you can determine the degree of influence on the volume of trade turnover of individual factors: the number of goods sold and changes in prices for them.

In the example given, the increase in trade turnover amounted to 600 million rubles. (2400 - 1800).

Due to changes in the sale of goods, trade turnover increased by 100 million rubles. (
):

including for product “A” the increase amounted to 500 million rubles. (5 x 300 - 5 x 200), and for product “B” there is a decrease of -400 million rubles. (8 x 50 - 8 x 100).

Due to price changes, trade turnover increased by 500 million rubles.

(
)

including for product “A” - by 300 million rubles. (6 x 300 - 5 x x 300), for product “B” - by 200 million rubles. (12 x 50 - 8 x 50).

For clarity, let’s summarize the obtained data in a table:

The influence of individual factors on changes in the volume of trade turnover

Analysis of the commodity structure of a trading enterprise's turnover involves a quantitative and monetary assessment of sales of individual goods, as well as determining the dynamics of structural changes. The structure of goods sold is measured as a percentage of the volume of trade turnover in general or of individual product groups. The results of the analysis are used to study the correspondence of the structure of product supply to consumer demand and have a decisive influence on the formation of orders to suppliers and the choice of suppliers themselves.

Trade turnover is the circulation of goods, the process of moving them from producer to consumer. There is a distinction between wholesale trade turnover - the promotion of goods from production to the retail trade network; retail - bringing goods directly to consumers.
In turn, wholesale trade turnover is divided as follows:
- warehouse turnover - sale of goods from a warehouse to a reseller (trade organization or individual entrepreneur) for further resale or to organizations for professional use;
- transit turnover - sale of goods from suppliers’ warehouses, bypassing the warehouses of a wholesale organization;
- intra-system turnover - release of goods from one base to other bases of the same wholesale organization.
In accounting, the sale of goods is reflected by the following entries:
- in wholesale trade Dt inc. 62 - Kt count. 901 “Revenue” - revenue from the sale of goods by bank transfer is reflected;
- in retail trade Dr. 50 - Kt count. 901 “Revenue” - revenue from the sale of goods for cash is reflected.
Thus, the size of the trade organization’s turnover is determined by the credit turnover in account 90 “Sales”, subaccount. 1 "Revenue".
However, this turnover includes value added tax (VAT), which the organization must charge for settlements with the budget.
VAT accrual is reflected by posting:
Dt sch. 903Kt inc. 683 “Calculations for VAT”.
Thus, in order to determine the turnover of a trade organization without taking into account VAT, which must be paid to the budget, the debit turnover on accounts 903 must be subtracted from the credit turnover on account 901.
A wholesale trading organization almost always keeps accounting records using an automated form. When computer processing of primary supporting documents (invoices, invoices) in the “Goods” subsystem, postings, as a rule, are generated automatically. You just need to select the appropriate document. Typical transactions are set up in advance and, when entering a document, are recorded in the book of business transactions. Based on these postings, a turnover sheet is formed for account 90. The same transactions are reflected in the journal order and the General Ledger.
In trading, revenue is defined as the difference between turnover before taxes are deducted and the cost of goods sold.
Deductible taxes are those taxes that an organization must accrue for payment to the budget. These include VAT and export duties.
The cost of goods sold is their purchase price. The purchase price includes the cost of the goods at supplier prices. If the organization's accounting policy provides for the inclusion in the cost of goods (their purchase price) of expenses related directly to the acquisition of a specific batch of goods, then these expenses are included in the purchase price. The method of forming the purchase price of goods (product cost) should be provided for in the accounting policies of a trading organization.

Inventory turnover

Everything that is in the warehouse is a current asset of the organization. These are frozen funds. To understand how long it will take to convert goods into cash, an inventory turnover analysis is carried out.

The presence of inventory balances on the one hand is an advantage. But even when they accumulate, sales decline, the organization still has to pay taxes on inventory. In such cases they talk about low turnover. At the same time, a high speed of selling goods is not always a big advantage. As turnover increases, there is a risk that the client will not find the right product and will turn to another seller. To find a middle ground, you need to be able to analyze and plan inventory turnover.

Terms

A product is something that is bought and sold. This category also includes services if their cost is paid by the buyer (packaging, delivery, payment for communication services, etc.).

Inventory is a list of goods available for sale. For retail and wholesale organizations, inventory refers to the items on shelves and those that are in stock, shipped, and stored.

The term “inventory” also includes products that are still in transit, in the warehouse, or in accounts receivable. In the latter case, ownership remains with the seller until the goods are paid for. Theoretically, he can ship it to his warehouse. When calculating turnover, only those products that are in the warehouse are taken into account.

Trade turnover is the volume of sales in monetary terms, calculated for a certain period. Next, the algorithm by which trade turnover is calculated and the calculation formula will be described.

Example 1

Average inventory:

Tz av = 278778 \ (6-1) = 55755.6 thousand rubles.

Osr" = (Begin balances + End balances)/2 = (45880+39110)/2 = 42495 thousand rubles.

Turnover and methods for calculating it

A company's liquidity indicators depend on the rate at which funds invested in inventories are converted into hard cash. To determine the liquidity of inventories, the turnover ratio is used. It is calculated according to different parameters (cost, quantity), periods (month, year), for one product or an entire category.

There are several types of turnover:

turnover of each product in any quantitative indicators (pieces, volume, weight, etc.);
turnover of goods by value;
turnover of the entire inventory in quantitative terms;
turnover of total inventory at cost.

In practice, the following formulas are most often used to determine the efficiency of inventory use:

1) Classic formula for calculating trade turnover:

Т = (Inventory balance at the beginning of the period)/(Sales volume for the month)

2) Average turnover (calculation formula for the year, quarter, half year) :

Тз ср = (ТЗ1+…+T3n) / (n-1)

3) Turnover period:

ABOUT days = (Average turnover * Number of days in the period) / Sales volume for the period

This indicator calculates the number of days required to sell inventory.

4) Turnover in times:

About p = Number of days / About days = Sales volume for the period / Average turnover

This coefficient shows how many revolutions the product makes during the period under review.

The higher the turnover, the more efficient the organization’s activities, the less the need for capital, and the more stable the position of the enterprise.

5) Inventory level:

Uz = (Inventory at the end of the period * Number of days) / Turnover for the period

The inventory level characterizes the company's supply of goods on a certain date. It shows how many days of trading the organization will have enough inventory.

Peculiarities

The formula for calculating trade turnover and other indicators presented above is used subject to the following conditions:

If the organization does not have inventories, then there is no point in calculating turnover.
Retail turnover, the calculation formula for which will be presented below, may be determined incorrectly if it includes targeted deliveries of goods. For example, a company won a tender to supply materials to a shopping center. A large batch of plumbing fixtures was delivered for this order. These goods should not be taken into account when calculating turnover.
The calculation takes into account live stock, that is, goods that arrived at the warehouse and were sold, and those for which balances are recorded, but there was no movement.
Product turnover is calculated only at purchase prices.

Example 2

Conditions for calculations are presented in the table.

Month	Implemented, pcs.	Remaining, pcs.







Average stock

Let's determine the turnover period in days. The analyzed period is 180 days. During this time, 1,701 products were sold, and the average monthly balance was 328 items:

OBDN = (328*180)/1701 = 34.71 days

That is, from the moment it arrives at the warehouse until it is sold, an average of 35 days pass.

Let's calculate turnover in times:

OB times = 180 / 34.71 = 1701 / 328 = 5.19 times.

In six months, the stock of goods turns over on average 5 times.

Let's determine the inventory level:

Uz = (243*180)/1701 = 25.71.

The organization's existing reserves are sufficient for 26 days of work.

Purpose

Inventory turnover is analyzed to find items where the product-cash-product cycle rate is very low and make decisions accordingly. It makes no sense to analyze products of different categories in this way. For example, in a grocery store, a bottle of cognac may sell at a faster rate than a loaf of cognac. But this does not mean that bread should be excluded from the range of goods. There is simply no need to analyze these two categories in this way.

Compare the following products within the same category: bread - with other bakery products, and cognac - with elite alcoholic beverages. Only in this case can we draw conclusions about the intensity of turnover of a particular product.

Analysis of sales dynamics in comparison with previous periods will allow us to draw a conclusion about changes in demand. If during the analyzed period the turnover ratio has decreased, then the warehouse is overstocked. If the indicator is growing and at a rapid pace, then we are talking about working “on wheels”. In conditions of commodity shortages, warehouse inventories may be zero. In this case, inventory turnover can be calculated in hours.

If the warehouse has accumulated seasonal goods for which there is low demand, then it will be difficult to achieve turnover. You will have to purchase a wide range of rare goods, which will affect their liquidity. Therefore, all calculations will be incorrect.

It is also important to analyze the delivery terms. If the organization makes purchases at its own expense, then the calculation of turnover will be indicative. If goods are purchased on credit, then low turnover is not critical for the company. The main thing is that the refund period does not exceed the calculated coefficient value.

Types of trade turnover

Just as prices are divided into retail and wholesale, trade turnover is divided into similar two types. In the first case, we are talking about the sale of goods for cash or at standard prices, and in the second - about sales by bank transfer or at wholesale prices.

Methods

In practice, the following methods of calculating trade turnover are used:

Based on the consumption of goods by residents of one area.
Based on the planned number of sales and average unit cost.
According to the actual turnover of the organization (the most popular method).

Data for calculations are taken from accounting and statistical reporting.

Dynamics

The following formula for calculating trade turnover shows the change in the indicator at current prices:

D = (Act of turnover of the current year / Actual turnover of last year) * 100%.

The dynamics of trade turnover in comparable prices is determined by the following formula:

D sop = (Act of turnover in comparable prices / Actual turnover of last year) * 100%.

Example 3

Trade turnover in 2015 - 2.6 million rubles.
- Sales forecast for 2016 - 2.9 million rubles.
- Trade turnover in 2016 - 3 million rubles.

Let's determine sales: (3/2.8)*100 = 107%.
- Let’s calculate trade turnover at current prices: (3/2.6)*100 = 115%.

Price index

If prices have changed during the period under study, then you first need to calculate their index. The value of this indicator increases under the influence of inflationary processes on the country’s economy. The coefficient shows the change in the cost of a certain number of goods over a period. Formula for calculating the price index:

Its. = C new/ C old

This formula is often used by statistical agencies to analyze certain categories of goods. For example, the volume of goods sold in 2014 was 100 thousand rubles, and in 2016 - 115 thousand rubles. Let's calculate the price index:

Ic = 115/100 = 1.15, that is, prices increased by 15% over the year.

Only after these steps is used the formula for calculating trade turnover in comparable prices:

Fact = (Turnover at current prices / Last year’s turnover) * 100%.

Example 4

In 2015, the company’s turnover amounted to 20 million rubles, and in 2016 - 24 million rubles. During the reporting period, prices increased by 40%. It is necessary to calculate trade turnover using the formulas presented earlier.

Let us determine wholesale trade turnover at current prices. Calculation formula:

Тт = 24/20 * 100 = 120% - for the current year, trade turnover has increased by 20%.

Let's calculate the price index: 140%/100% = 1.4.

Let's determine trade turnover in comparable prices: 24/1.4 = 17 million rubles.

Formula for calculating trade turnover over time: 17/20*100 = 85%.

Calculation of dynamics showed that the growth occurred only due to an increase in prices. If they had not changed, trade turnover would have decreased by 17 million rubles. (by 15%). That is, there is an increase in prices, and not in the quantity of goods sold.

Example 5

The initial data for completing the task are presented in the table below.


		Forecast, thousand rubles.	Fact. turnover, thousand rubles

Now you need to determine trade turnover for the current year using prices from the previous period.

First, let's determine the percentage of sales plan fulfillment: 5480/5300*100 = 103.4%.

Now we need to determine the dynamics of trade turnover as a percentage compared to 2015: 5480/4650*100 = 120%.

Trade turnover for 2015, thousand rubles.
Trade turnover for 2015, thousand rubles.	Forecast, thousand rubles.	Fact. turnover, thousand rubles	Performance, %	Compared to last year, %

As a result of exceeding the sales plan in 2016, the company sold products worth 180 thousand rubles. more. Over the year, sales volume increased by 920 thousand rubles.

A detailed calculation of retail turnover by quarter allows us to determine the uniformity of sales and identify the degree of demand satisfaction. Additionally, it is also worth conducting an analysis of sales by month to identify signs of declining demand.

Formula for calculating turnover in retail trade

Analysis of price changes by product groups provides for a quantitative and cost assessment of individual goods, determining the dynamics of their shifts. The results of the study are used to study the correspondence of supply to demand and influence the formation of orders.

The analysis of trade turnover is carried out quarterly and based on the results of the audit, it is possible to establish the reasons why the trade turnover has changed. The formula for calculating the balance is given below:

Zn + Nt + Pr = R + V + B + U + Zk, where
Zn(k) - inventories at the beginning (end) of the planning period;
Нт - commodity allowance;
Pr - arrival of goods;
P - sales of goods by individual groups;
B - disposal of goods;
B - natural decline;
U - markdown.

You can determine the degree of influence of balance sheet indicators by calculating the difference between planned and actual indicators, or using the chain substitution method. At the next stage, retail turnover, the calculation formula for which was presented above, is analyzed for changes as a result of improved labor productivity, an increase in the number of employees and the efficiency of use of fixed assets. The analysis ends with determining the prospects for sales growth and changes in the structure of goods.

Trade turnover is the most important indicator for an enterprise selling anything. First of all, it is expressed in monetary terms and characterizes the amount of products sold over a certain period. Trade turnover does not show profit; profitability cannot be judged from it; it is simply a quantitative number expressed in commodity form. But analysis of turnover is extremely important for choosing a company’s future strategy.

Classification

All types of trade turnover are divided into three large groups: wholesale, retail and trade intermediary. Each of these segments is divided into other subtypes, which is why the classification has a rather branched form.

Wholesale turnover is the sale of goods from the manufacturer to intermediaries who are engaged in the subsequent resale of individual batches. Wholesale firms play a key role in the market. They make it possible to overcome obstacles that arise during the transportation and storage of goods as they move from the manufacturer to the end user.

The main task of a wholesale enterprise is the uniform distribution of necessary items across all retail outlets, even the most remote geographically. In this regard, the following subtypes of wholesale trade turnover are distinguished: by region, by other regions and international. A more detailed classification can be seen in the figure.

Retail turnover

It combines all operations related to the delivery of goods to the final consumer. Retail sales complete the process of circulation of consumer goods and food products in the consumer market. Since this type of trade turnover occupies the largest share in the general classification, several types of delivery of items to the end user can be distinguished. A more detailed gradation can be found in the following figure.

The organizational form can be completely different. In addition to the usual trade in stores and supermarkets, catalogs and booklets are gaining great popularity. New forms are constantly emerging, such as selling through social networks and group purchasing.

Payment methods also differ. Long gone are the days when it was difficult to pay with a card in a store. Now even small market stalls are often equipped with portable handheld terminals. You can also pay checks or take out expensive goods on credit.

The importance of turnover analysis for a store

Trade turnover analysis is performed to determine the following number of tasks:

in order to study the dynamics of sales and implementation of plans;
to determine the most influential groups of goods and, conversely, the least profitable;
to study factors influencing trade turnover;
to identify reserves, what can still be purchased, and what needs to be gotten rid of;
to develop strategic plans for future activities.

The general scheme by which the analysis is carried out is shown in the figure.

General indicators

Trade turnover indicators serve to establish the main qualitative and quantitative characteristics of a company’s work for a certain period. The further calculation of other economic indicators depends on the correctness and completeness of the analysis performed. Today, all these tasks are performed very simply with the help of automated programs that help to fully monitor any changes in turnover and quickly make prompt decisions to eliminate problems if they arise.

The main indicators of trade turnover include:

volume of maintenance in monetary terms at prices of the current and planned periods;
assortment structure;
Maintenance per day, month, quarter, year;
Maintenance per worker;
time of circulation of goods;
number of revolutions over a certain period of time.

Dynamics of trade turnover growth

Since trade turnover is the monetary equivalent of all goods sold at one enterprise for a specific period, the first indicator that needs to be calculated is its dynamics at current prices. Abbreviated as DTO. You can compare any period of time using the formula:

ATO = Actual turnover for the period in current prices * 100 / Actual turnover of the period that is being compared.

This formula is applicable for periods in which prices did not change. For example, over a short period of time - one or two months. If a quarter or a year is being considered, prices have most likely changed and therefore the calculation must be adjusted using a price index, which is calculated as follows:

I price = price of the reporting period / price of the base period (taken as 100%).

In this way, you can adjust the actual trade turnover (the formula is presented below) at current prices:

F then in comparable prices = (Actual trade turnover in current prices / I prices) * 100%.

Turnover speed

An indicator such as trade turnover has its own speed. In fact, it characterizes how long it will take for all warehouse stocks to go into circulation. Velocity analysis is extremely important for food retail businesses. Thanks to it, shelf life, delivery time and final sales dates are calculated. After all, you need to order the goods on time so that they can arrive before customers buy up the last remnants, and at the same time not violate the expiration dates. Trade turnover (speed formula) is characterized by the following indicators:

Inventory turnover number:

where T is the monetary expression of trade turnover for a certain period, and Z is the amount of inventory.

The circulation time is calculated in days:

where D is the number of calendar days, and n is the turnover ratio (calculated above).

Range

When engaged in trade, it is impossible not to analyze the assortment. Whatever the trading enterprise, small or large, the owner still looks at which goods are bought more, which ones less, which ones to order for future use, and which ones will be in demand by the end of the season. Assortment policy is a whole branch of science, the study of which can significantly increase the profitability of an enterprise.

In small trade organizations, assortment analysis is carried out on an intuitive level. By simple comparison and study of trade turnover, items with the greatest and least demand are recognized. But for large hypermarkets and wholesale companies, assortment analysis plays a key role. And it’s quite difficult to deal with this manually.

A thriving enterprise has everything under strict control. Each unit of goods has its place in the structure of trade turnover. At such enterprises, it is advisable to analyze the assortment using ABC XYZ analysis. The first half of ABC means studying product groups for profitability, group A includes those who bring the greatest income, C - the least. XYZ is responsible for demand. Thus, the AX group will include goods that are purchased most often and bring the greatest profit. If there are items included in the last category of CZ, then it is better to get rid of them altogether, since they are ballast.

ABC XYZ analysis is a complex and simple method at the same time. The easiest way to do this is with automated programs. It gives excellent results, which perfectly characterize retail turnover.

conclusions

Trade turnover is the single and most important indicator of the performance of a trading enterprise, regardless of its size and form of organization. Its analysis allows one to judge the results of activities and choose the company’s future strategy.

Analysis of qualitative trade indicators

In addition to absolute indicators of capital growth, it is necessary to analyze the quality of transactions performed and create a system of parameters that would allow studying the dynamics of progress.

When making decisions about any type of work activity, people are primarily guided by the desire to have sufficiently high and guaranteed earnings. But real satisfaction comes only from work that develops intelligence, creativity, skills and corresponds to a person’s interests.

Excessive passion for the pursuit of money often overshadows many spiritual values. And the process of creation turns into the usual feverish “acquisition” of capital. No one denies that the more financial reserves a person has, the more confident he feels. However, the path to their accumulation should be a systematic process with an assessment of the progress of each stage, without internal tension, with a feeling of satisfaction for each of the achievements obtained and an objective correction of mistakes made.

Forex trading is one of the activities that inherently forces you to constantly think about money. And it is very difficult to divert your attention from observing the process of replenishing a trading account or desperately contemplating negative dynamics. But one of the secrets of trading success is that it is necessary to completely distract from the financial result of trading and focus detachedly and rationally on the immediate execution of operations. This approach allows you to improve your skills and objectively assess what is happening, which, undoubtedly, is reflected in the quality of the transactions. The result in the form of replenishment of the trading account will not be long in coming, but the dynamics of its growth may turn out to be much more impressive.

In order to evaluate your actions, you need to create an individual system of parameters by which you need to evaluate your progress on a daily basis. These can be both qualitative and quantitative indicators. First of all, you need to focus on the following aspects for evaluation.

1. Managing losses is more effective in account growth than intensively pursuing profits.

2. All strategies are based on risk management.

3. Risk control is the main criterion for opening a transaction.

4. The developed trading plans do not seem perfect; you constantly want to supplement them.

5. Market charts show more opportunities than time allows for their implementation.

6. Despite the constant replenishment of the knowledge base, the feeling of professionalism does not come; there is a need for further growth.

7. Healthy skepticism towards the opinions of others comes, and the development of one’s own concepts becomes a priority.

8. Trading is perceived as any other type of activity that requires career growth; sometimes a feeling of boredom comes from the predictability of market behavior.

9. Actions that do not comply with individual trading standards are objectively recognized.

10. In the analysis of past periods, there is no room for attributing errors to the influence of external factors.

11. A diary is kept daily, absolutely all actions are analyzed, and adjustments are made to the rules and trading system.

12. Trading interests change over time.

13. The perception of profits and losses is not accompanied by emotional instability.

14. Successful and negative periods are assessed, as well as the reasons for inaction or exit from the market.

Naked capital gains figures do not make it possible to objectively evaluate trading periods; they must be supported by an analysis of the quality of trading processes and the dynamics of the progress achieved.