Sales YOY Growth Analytics

Sales Year-Over-Year Growth Analytics document for better usage

Sales year-over-year growth Analytics provides metrics on how quickly a company has been growing its sales. YOY comparisons are a very important and effective way to evaluate the financial performance of a company.

 

Sales Growth is measured as the percentage change in sales over a given time period. This will help you understand whether there is a periodic growth in the company's revenue and Gross profit.

 

Analyzing sales growth answers the ‘Why’ for the company. Why is there a growth or why is there a negative growth. YOY growth compares how much you’ve grown in the recent period compared to the past.

 

You can measure sales growth at Service Category level, which is an added advantage for you to understand the revenue and gross profit per service category.

 

You can understand the categories of which maximum revenue is achieved and at the same time to take necessary action and target the certain category to improve sales.

 

Sales YOY Growth Analytics is designed to present below KPIs and Insights

KPI

Insights

Year-over-Year | Sales Revenue Growth Report*

You will know how much Growth in terms of Percentage of Sales revenue compared to previous year Sales Revenue.

 

A yearly (Financial or calendar) sales growth is compared with the previous year or years. Multiple years are compared to know the way the company is heading and to check if the growth is in sync with the vision .

 

A positive Annual Sales Growth is very important for the Financial stability of the company.

 

Sales Revenue per Year

You will know how much Total Revenue in terms of Dollars is generated based on a selected Date Period

Gross Profit per Year

You will know how much Total Gross Profit in terms of Dollars is generated based on a selected Date Period

Year-over-Year | Sales Gross Profit Growth Report

You will know how much Growth in terms of Percentage of Gross Profit compared to previous year Sales Revenue.

Annual Sales Trend

You can compare Sales Revenue with Gross Profit. Understand if the Revenue and Profit are moving in the right direction.

Top 5 Service Category by Sales Growth per Year

You will know Top 5 service categories by Sales Revenue Growth Rate

Top 5 Service Category by Gross Profit Growth per Year

You will know Top 5 service categories by Sales Gross Profit Growth Rate

Sales Revenue Growth Report for Service Category

The sales growth is also calculated Service Category wise.

 

This is in case of companies with multiple Service Category portfolios and at times there may be an overall growth but that would be because few Service Categories performed outstandingly to cover the negative growth of others.

 

In such cases considering a detailed Service Category, wise sales growth is helpful.

The comparison for growth may be done with previous years achievements or similar Service Category of competitors or with other Service Categories in the same company.

 

You will understand Growth for every Service category using presented metrics such as current Year Revenue vs Previous Revenue, Revenue Difference, Changes from Previous year Sales Revenue and Sales revenue Growth percentage by Service Category.

Gross Profit Growth Report for Service Category

You will understand Growth for every Service category using presented metrics such as Current year Gross Profit vs Previous year Gross Profit, Gross Profit Difference, Changes from Previous Year Gross Profit and Growth percentage by Service Category.

Sales Growth is a strategic indicator used in the decision making process by executives and the board of directors and influences the formulation and execution of business strategy.

 

Calculation

 

Sales Growth is calculated by reducing last year's sales from current year’s sales. The percentage of sales is calculated by taking the base of last year and multiplying by 100.

 

Year-over-year Growth = [(This Year – Last Year) / Last Year] X 100

 

Understand Positive Sales Growth

 

When the growth of Sales numbers is more than the compared base, it is termed as positive Sales Growth. Every company always strives for positive sales growth and it is always beneficial for the financial well-being of a company to have positive sales growth.

 

Understand Negative Sales Growth

 

When the current year earnings are lesser than previous years, it is termed as negative sales growth. It is an indicator that somewhere, something went wrong due to which the sales suffer. A continuous negative growth brings tough choices to a company and it often does not end very well

 

Importance of Sales Growth & Benefits

  • Sales growth is an indicator that the steps taken towards policies are correct and working. A positive sales growth is a green signal which means things are being done right while a negative sales growth is a red signal which means it is time to stop and rethink.

  • A positive sales growth is the objective sought by a company because it means more profits. Positive sales growth also signals that conditions are favorable in the market and the strategy or technique company is currently following is working in their favor. While getting a positive sales growth may be easy but maintaining it is a challenging task.

  • A negative sales growth is a signal for a company shouting for a change. Surely something is not working right which is getting negative sales growth and it needs to be changed. The company, then, has to rework on its current policies and teams and rework on next year’s targets.

  • A positive sales growth also indicates an increase in market share , customer acceptance, and user base. It means the product is being accepted in the market.

  • To maintain a positive growth, the company needs to adapt to the changing market. Thus, a positive sales growth also indicates making necessary changes to the current working of the company, in order to improvise and adapt the market needs and customer Demands in the long run.

  • Various comparisons of Sales Growth can determine various approaches that a company can take to increase its sales. The type of Sales Growth analysis followed by a company determines their position in the market. A further detailed analysis like analyzing customer Sales Growth will further determine the reason for the increase or decrease in sales growth.