![]() But some managers stand out thanks to their business sense in terms of risk-taking and anticipation. Managing a company is not necessarily a miracle. It can also allow the company to innovate and thus give a boost to its competitiveness. Not only to allow the company to satisfy growing demand and to better position itself in a market, thus keeping its shares or pushing the limits of its network but also and especially, to ensure the service of this one, if it is threatened by a competition which it would not have supported. It can range from recruitment to the purchase of new machines to increase, for example, the sales output. It necessarily implies an increase in costs, called variable costs in this case. The more your order book grows, the more your variable costs increase.Īt least that's the logic because it depends on whether you produce more to keep up with the size of the order volume. ![]() It is important to note that the turnover fluctuates according to favorable or unfavorable economic conditions, seasons, sectors, or management strategies, among other factors.Ī company's revenues can't remain invariable because a company is often called upon to encounter ups and downs in activity throughout its existence.īut if there is one constant in a company, it is this: sales and expenses are closely linked. Here it is Projected sales = fixed unit selling price x number of projected sales. The formula for calculating the projected turnover is straightforward. We will guide you and advise you for better control of your prices, which, coupled with your capacity to enter into contact in a market, is determining within the calculation of your projection.ĭo not break your head. We want to point out that our firm offers the best services in this field. However, you can also order market studies from specialized service providers to get an idea of prices and purchasing intentions to define your objectives better. It can also be used when applying for financing from a bank. Among other things, you can use it to present your business plan to investors or the company's general management. It is essential to know your turnover before you can make a forecast, for example. It is often according to the turnover that companies are classified by size in their sector. To understand what you are worth in your industry, you can compare your turnover to the average of the whole sector. Therefore, to master a market or a sector, logic would dictate that you know your turnover in great detail. Knowing your turnover allows you to place yourself in a market compared to your competitors. In addition to measuring a company's performance, this indicator also makes it possible to define the size of a company in a given sector or market. Knowing your turnover to better position yourself in your sector Once this information is studied in detail, it can inform, with extreme precision, the company's state of health. Some of its components, such as the turnover (amount automatically calculated according to the sales and payment terms indicated), the gross margin (difference, excluding taxes, between the sales price and the cost of goods or services) or the turnover per employee, are real mines of information. Turnover: Indicator of the company's activityĪs the principal barometer of a given company's performance, sales are a good indicator of the company's activity. The formula takes into account the sum of all invoices for sales of goods and services, as well as credit notes, provided that all these items issued during an accounting period are in tax-free mode. The following formula: Turnover = sales price * quantities sold. You can calculate your turnover for any period, i.e., day, week, month, semester, quarter, or year.Īnd you don't need a super calculator to do it. ![]() We also talk of projected turnover in the case of future income projections. In this case, the turnover includes all charges, including the Value Added Tax (VAT). First, there is the turnover excluding taxes. ![]() We must distinguish two types of turnover. Turnover: excluding taxes or including all charges? In the case of a group, for example, instead of a simple turnover, we will rather talk about consolidated turnover, including all the sales and goods or services invoiced during a fiscal year by all the group's subsidiaries. You should note that the definition of turnover can vary according to the legal form of the company. ![]() It is on almost everyone's lips in the business world: the turnover, which is nothing more than the sum of sales of goods made or invoiced on a service by a company. Turnover is what we are going to make you discover. Generally used to evaluate a company, monitor sales performance, or determine a company's market share in a given sector, turnover is more than a simple performance indicator. ![]()
0 Comments
Leave a Reply. |