KPI for Measuring of Period over Period Sales Growth % (where Period can be Year over Year, Quarter over Quarter or Month over Month) posted in category Sales
KPI details:
This indicator is for measuring of the % growth in sales of a Company for a given time period (YOY, QOQ, MOM).
More details:
This is an important KPI, most likely figured in a company’s quartile or annual reports. It is a key indicator of a company’s success/failure, profitability or dominance of market share.
Companies may compare this data against their costs, marketing and sales campaigns’ efforts and determine strategies to maximise this sales growth over the given time period.
Formula
(Total Sales this period - Total sales previous period)/ Total Sales previous period x100
For example, if this quarter Company A had total sales of 10 million dollars and the previous quarter it had Total Sales of 8 million dollars, the sales growth % is calculated as following:
(10 million – 8 million) / 8 million = 2 million/7 million x100 = 28%
This represents a 28% sales growth QOQ.
KPI Units: %
KPI Time Frame: update monthly, quarterly or yearly
Posted by Oana Boteanu | Help to protect community: Flag for moderation
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This KPI is used at many levels, by companies for their internal management, or even at national level.
Examples:
China YOY retail sales growth:
June 13.1%
July 13.7%
China MOM retail sales growth:
June: 1.29%
July 1.05%
McDonalds:
3.8 % YOY sales growth in EU
3.5 % Sales Growth in North America
YOY will be calculated over a specific time period, after one year from when calculation started. China had a 13.1% growth in June 2012 from June 2011, and a 13.7% growth in July 2012 from July 2011.
Oana Boteanu | September 6, 2012 at 7:39 am
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