sales

(noun)

Revenues

Related Terms

Examples of sales in the following topics:

  • Recording Sales

    • Net sales are gross sales minus sales returns, sales allowances, and sales discounts.
    • In financial ratios that use income statement sales values, "sales" refers to net sales, not gross sales.
    • Sales - Sales Return & Allowances - Sales Discount = Net sales
    • Gross sales are the sum of all sales during a time period.
    • Net sales are gross sales minus sales returns, sales allowances, and sales discounts.

  • Sales Forecast Input

    • Also referred to as revenue, they are reported directly on the income statement as Sales or Net sales.
    • For financial ratios that use income statement sales values, "sales" refers to net sales, not gross sales.
    • Gross sales are the sum of all sales during a time period.
    • Net sales are gross sales minus sales returns, sales allowances, and sales discounts.
    • The sales figures reported on an income statement are net sales.

  • Days Sales Outstanding

    • The days sales outstanding figure is an index of the relationship between outstanding receivables and credit account sales achieved over a given period.
    • Typically, days sales outstanding is calculated monthly.
    • DSO ratio = accounts receivable / average sales per day, or
    • DSO ratio = accounts receivable / (annual sales / 365 days)
    • Changes in sales volume influence the outcome of the days sales outstanding calculation.

  • Total Assets Turnover Ratio

    • This is a financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue or sales income to the company.
    • "Sales" is the value of "Net Sales" or "Sales" from the company's income statement".
    • Also referred to as revenue, they are reported directly on the income statement as Sales or Net sales.
    • In financial ratios that use income statement sales values, "sales" refers to net sales, not gross sales.
    • Asset turnover measures the efficiency of a company's use of its assets in generating sales revenue or sales income to the company.

  • Overview of Merchandising Operations

    • Merchandising is any practice which contributes to the sale of products to a retail consumer.
    • In the broadest sense, merchandising is any practice which contributes to the sale of products to a retail consumer.
    • At a retail in-store level, merchandising refers to the variety of products available for sale and how the products are displayed to stimulate interest and entice customers to make a purchase.
    • Presidents' Day sales are held shortly thereafter.
    • Merchandising is any practice which contributes to the sale of products to a retail consumer.

  • Profit Margin

    • Profit margin measures the amount of profit a company earns from its sales and is calculated by dividing profit (gross or net) by sales.
    • Profit margin refers to the amount of profit that a company earns through sales.
    • The profit margin ratio is broadly the ratio of profit to total sales times 100%.
    • The higher the profit margin, the more profit a company earns on each sale.
    • The percentage of net profit (gross profit minus all other expenses) earned on a company's sales.

  • Additional Funds Needed (AFN)

    • Since a business that seeks to increase its sales level will require more assets to meet that goal, some provision must be made to accommodate the change in assets .
    • To phrase it another way, the business must have some plan to actually finance the new assets that will be needed to increase sales.
    • AFN is a way of calculating how much new funding will be required, so that the firm can realistically look at whether or not they will be able to generate the additional funding and therefore be able to achieve the higher sales level.
    • AFN determines the extra assets and financing that will be needed for a firm to undertake a new project or expand its operations and sales.

  • Leverage Models

    • What is the Degree of Operating Leverage at a level of 200 sales?
    • Once again, contribution margin is the fraction of sales that contributes to the offset of fixed costs, and subsequently the fraction of sales that contributes to profits.
    • For a given level of sales and profit, a company with higher fixed costs has a higher contribution margin, and hence its operating income increases more rapidly with sales than a company with lower fixed costs (and correspondingly lower contribution margin).
    • Thus, for a given level of sales and profit, the DOL is higher when fixed costs are higher.
    • As sales increase past the break-even point, both operating margin and the DOL increase rapidly from 0%.

  • Fixed Assets Turnover Ratio

    • Fixed-asset turnover is the ratio of sales to value of fixed assets, indicating how well the business uses fixed assets to generate sales.
    • Fixed-asset turnover is the ratio of sales (on the profit and loss account) to the value of fixed assets (on the balance sheet).
    • It indicates how well the business is using its fixed assets to generate sales.
    • Fixed asset turnover = Net sales / Average net fixed assets
    • Fixed-asset turnover indicates how well the business is using its fixed assets to generate sales.

  • Reporting Investing Activities

    • An investing activity is anything that has to do with changes in non-current assets -- including property and equipment, and investment of cash into shares of stock, foreign currency, or government bonds -- and return on investment -- including dividends from investment in other entities and gains from sale of non-current assets.
    • The sale of a factory would be an example of a cash inflow from investment.