How to manage "people, money, things and information" in "brand" stores?

Among many management elements of a shop, the management of people is the first key.

□ Conduct training on shopping guide and public relations for relevant units and personnel of the store.

1) cultivate the psychological quality and compulsory quality of shopping guides.

Cultivate the psychological quality of shopping guides;

A, the significance of shopping guide to his work purpose is consistent with the prosperity of specialty stores. Therefore, it is necessary for the shopping guide to meet the urgent needs of the operators and always be consistent with the operators.

B, the job responsibility of the shopping guide should be to sincerely serve the interests of customers. The business purpose of the specialty store and the realization of the interests of the shopping guide are closely related to the customers. Therefore, we should always adhere to the business purpose of "customer first, service first" in the specialty store.

C, promote the shopping guide to serve customers faithfully and wholeheartedly, and establish customers' confidence in sales positions.

Cultivation of professional quality:

Train shopping guides to properly handle interpersonal relationships with store managers, colleagues and customers, and recommend the business explanation ability of goods.

A, often take the initiative to communicate with the shopping guide, and cultivate their mentality of obeying the arrangement and taking care of the overall situation.

B, train the shopping guide to care for each other among colleagues and have the spirit of unity and cooperation.

C, train shopping guides to treat customers correctly, and constantly improve their shopping guide ability and service skills.

D, the content of the clerk training, according to the clerk training courses and other relevant information.

E, care in life:

At work, we often encounter situations in which shopping guides are upset, listless, unhappy or angry as soon as they take up their posts. This phenomenon is caused by family disputes, quarrels between husband and wife (lovers) or excessive hilarity with colleagues at night, insomnia, lack of sleep, financial difficulties and many other reasons. As a store manager, we should give timely care, understand the situation, help them relieve their troubles and worries in time, and keep them optimistic, positive and happy when they take up their posts.

2) the operator (manager) should handle the relationship with the company's marketing department. Specialty stores are the circulation channels of clothing products, and the marketing department and customers seem to be the source and tail of specialty stores, which are indispensable.

A. don't put too high demands on the company's marketing department. Such as: exceeding the franchise agreement, returning money on credit, asking for gifts, promotion expenses, etc.

Timely settlement of payment. Credit will affect the reputation and image of the store, and the store manager should raise funds in time to keep cash purchases.

C, actively cooperate with the marketing department, and share all kinds of expenses conducive to operational efficiency and promotion. Such as the sharing of computer installation fees, promotional gifts, advertising, commodity discounts, etc.

3) Operators (managers) should coordinate the relationship with customers;

A When there is a dispute between the shopping guide and the customer, the manager should take the customer's side. The store manager should try his best to think of customers everywhere and try his best to make customers spend money and buy satisfactory goods. If the clothes bought by customers are defective, they should return them. This tangible loss will be much smaller than the intangible loss of refusing to return the goods.

B don't argue with customers at the counter. When shopping guides quarrel with customers, they should not help, let alone be indifferent. He should take the customer to a secluded place, patiently persuade and explain, let the customer calm down and avoid adverse effects on the store.

C, eliminate the hidden trouble of quarrel:

A, control the purchase, don't let inferior goods on the shelves. Free exchange of inferior goods.

B, eliminate the quarrel caused by long waiting time, slow service speed or being left out.

C, the manager should do everything possible to create a fast service environment, completely eliminate hidden dangers.

□ Organize in-store commodity circulation management;

1) Organize the procurement work correctly.

A, the variety, style, color and specification of the "brand" clothing exclusively sold by the exclusive store must be purchased. The mainstream clothing should be complete, and the secondary clothing should also be complete, and even the clothing beyond the specifications (such as oversized and ultra-small clothing products) should be properly purchased to meet the different needs of customers. Therefore, more business opportunities can be created.

B, in terms of purchasing quantity, we should master the economic bulk purchasing, that is, we should master the basic principles of "ordering by sales, being diligent and quick to sell, promoting by sales, and ensuring storage and sales".

2) Highlight the brand image of "Brand Men's Wear" and plan the promotion work. In monopoly sales management, the store manager should not only train the shopping guide to do a good job in sales service from the moment customers enter the store, but also pay attention to highlighting the brand image of "brand" clothing, plan the promotion of clothing products in time, and expand the benefits of monopoly sales.

A. highlight the brand image of "brand".

B, according to the unified design of the window, shelf display goods.

C. Plan and organize effective promotion activities:

A, store POP advertising, that is, selling some advertisements to stimulate customers' purchasing determination, which is usually arranged by brand clothing companies.

B, apply for membership points method: apply for membership in currency, adopt the points system and give preferential treatment, so as to satisfy old customers, reach a tacit understanding with customers and usher in a new customer base.

C, promotion of new products listed as gifts: the use of goods to change seasons is naturally discounted sales, and sometimes it will satisfy the vanity of customers who are usually financially strapped to buy famous brands.

D. Reward guests and promote sales during holidays. Making use of New Year's Day, Spring Festival, May Day, Mid-Autumn Festival, Seniors' Day, National Day, Christmas, Teacher's Day, Valentine's Day and other major festivals or traditional festivals to reduce the price of gifts reflects the company's return or reward to consumers and is very attractive to customers.

In short, all kinds of effective activities engaged in by specialty stores for the purpose of creating consumer demand or purchasing desire belong to the category of promotion. Brand clothing companies will arrange the annual promotion plan reasonably every year, so the above promotion activities will also be carried out under the advice or guidance of the company, thus ensuring the consistency of brand actions.

-Strengthening the management of materials in shopping malls;

1) For the sale, display and inventory of clothing goods in the store, it is necessary to establish a classified ledger for accounting management to ensure that the accounts and goods are consistent.

2) Goods in the warehouse should still be stacked by category. Pay attention to preventive measures such as fire prevention, moisture prevention, moth prevention, dust prevention and wrinkle prevention.

3) At least twice a year, with spring and summer before autumn and at the end of winter.

-careful calculation, pay close attention to the accounting of benefit indicators, and reduce operating expenses.

The ultimate goal of "brand men's wear" monopolist is to get rich returns. Analyze the reasons for the store's profit and loss, take corresponding measures in time, ensure the realization of business objectives, and never operate blindly. Therefore, in many indicators of specialty store accounting (such as commodity purchase index, sales index, capital index, circulation cost index, etc.). ), it is suggested to firmly grasp the accounting of total operating profit or profit rate first.

The exclusive store shall establish and calculate the detailed ledger of operating expenses, which shall include the following items:

1. Transportation and miscellaneous expenses; B. salary; C, welfare expenses; D, packaging fee; E, the loss of goods; F. store rental fee; G. depreciation of fixed assets; H, repair costs; First, the amortization amount of the value of low-value consumables; J, interest; K. other expenses.

Pay attention to the use and management of information.

First, the use of computer information management. The purchase, storage, sales and analysis are all carried out by computer, which is simple and convenient and avoids risks.

B, each specialty store has a "customer suggestion box" to collect customers' opinions on goods and services.

Views.

Every clerk must keep in mind the above service details and be familiar with its operation process, so as to make our store more perfect and become a first-class specialty store.

Second, sales management.

□ Effectively increase turnover

The daily turnover of retail stores is an extremely sensitive issue, and it is also the most concerned issue of the industry. Through the decomposition of the following formula, I believe that everyone can have a certain understanding of the true meaning of turnover and how to use various marketing factors to improve store performance, and take effective measures on this basis.

Turnover = passenger flow (store location) × customer entry rate (store atmosphere) × customer turnover rate (promotion skills, service attitude and hospitality skills) × average quantity of goods purchased (additional promotion )× average unit price of goods purchased (providing goods with higher added value).

To sum up, we can know that turnover is the multiplication effect of five factors: passenger flow, customer income ratio, customer transaction ratio, average quantity of goods purchased and average unit price of goods purchased. In order to increase the turnover of stores, it is necessary to analyze these five factors, and stable and sustained marketing performance cannot be separated from effective management and control.

flow of passengers

As the amount of passenger flow can affect the performance of stores, we should first consider opening stores in areas with frequent traffic, and then effectively use the promotion activities of merchants, which is also the reason for the increase in passenger flow, but the fundamental task is to expand the company's stores and cultivate basic regular customers.

Customer entry rate

Even if the store is located in a place with frequent passenger flow, it is difficult to drive the store's performance if it lacks the charm to attract customers into the store. Therefore, it is necessary to effectively shape the characteristics of the store, such as the charm of window display, the beautification of store layout and the attraction of related promotional activities, and the diversification of store service mechanism, which can not only attract passing customers into the store, but also attract customers who come specially to improve the rate of entering the store.

Customer transaction ratio

When customers enter the store, how to stimulate their shopping motivation and action depends on the display of the overall commodity power and sales power of the store. Such as the atmosphere of floor decoration, the characteristics of product composition, the display effect, the service attitude and hospitality skills of sales staff. , it will affect the transaction ratio of customers' shopping.

Average quantity of goods purchased

It depends on the integrity of the store's commodity collection to meet the needs of customers; Furthermore, it depends on the relevance of commodity composition and the understanding of sales staff to provide customers with a series of interrelated commodities. At the same time, with the in-depth understanding of goods, sales staff can make appropriate explanations and suggestions for customers at any time, thus promoting customers' confidence and demand for goods and increasing the number of goods purchased by shop customers.

Average unit price of purchased goods

The above-mentioned average quantity of goods purchased is aimed at the increase of "quantity" and the improvement of "value" of goods, which is also related to the price of the whole series of goods. Even for the same transaction, efforts should be made to increase the unit price of customers. Therefore, in the collection of goods, we must be able to provide goods with higher added value according to customer needs.

Through the analysis of the above factors, we can see that the way to improve the turnover of retail stores is through the combination of various factors such as site strength, commodity strength and sales strength, rather than relying solely on some efforts.

□ Analysis of daily operation profile (see Daily Report of Terminal Operation Profile)

With the increase of terminal competitive sales, the corresponding work requirements and workload also increase. In order to reduce the work pressure of terminal owners, a new report with multiple functions of report and management information is formulated, which has the functions of store sales commodity form analysis, sales format analysis, sales energy trend analysis, payment method and fund management, commodity inventory management, customer service management, personnel management, commodity management, store management and so on, and is instructive, analytical and summative for store management.

1), operating revenue and expenditure management

A category analysis: the key point is to provide all kinds of sales information, and at the same time, it can effectively reflect the average unit price and total unit price of all kinds of goods. The effective collection of this part of information will provide high participation value for the store's commodity ordering and commodity circulation.

Net turnover = turnover-sales discount-return.

Net sales ratio = all kinds of net sales ÷ total sales × 100%

Sales quantity: according to the sales on the computer receipt, the sales quantity will be consistent with the sales column of inventory management, otherwise it will be an error.

Sales proportion = category sales ÷ total sales × 100%.

Calculation method of commodity unit price: unit price of various commodities = net sales of commodities ÷ quantity of commodities sold.

Average unit price = total net sales ÷ total number of units sold.

Accounting calculation method: the sum of the proportion of each category (net sales and number of pieces sold) = 100%.

B. Discount proportion analysis: Through the statistics of daily sales discounts, we can clearly see the consumer groups of store customers, such as company related households, major store customers, group buying units, etc., and talk with the management department, and also compare the consumption differences among stores.

Discount proportion analysis: classify and count according to the discount of computer receipt, and fill it in correctly and truthfully.

C. Sales cycle analysis: It mainly reflects the number of customers, the number of transactions and the amount of transactions in each cycle, and then calculates the customer unit price in each cycle, which is convenient for the store's manpower deployment and handover cycle. More importantly, it can analyze the consumption habits, purchasing characteristics and consumption level of passenger flow in different periods.

Sales period analysis: according to the business period, the transaction amount and the number of transactions are counted separately, and then the customer unit price of each period is calculated.

D, sales trend analysis: mainly based on the sales situation and average sales in the last two periods, forecast the sales trend thereafter.

Leaping trend = (this week's sales-the same period last week) ÷ this week's sales.

2) Cash management

A. Analysis of payment method: mainly monitor the payment method of daily sales of the store, and effectively predict and supervise the expected cash return of the store.

B. Cash receipts and payments statistics: You can monitor the cash flow direction (expenditure and remittance) and cash balance of the store's operating funds on the first day, so as to facilitate the allocation of funds and the implementation of custody responsibilities.

C cash receipt and payment record: record overpayment, overpayment, underpayment and underpayment. It mainly reflects the abnormal cash situation in the store operation process, and at the same time ensures that the incident can be truly reflected, reported and resolved in time.

3), inventory management

A. Commodity inventory management: it mainly reflects the daily purchase (return), sales (return) and inventory of various commodities in the store. It is convenient for stores to analyze the rationality of commodity inventory according to the sales situation, so as to take corresponding commodity management measures.

B. management of commodity replenishment and transfer:

According to the sales situation, report and transmit the information of goods allocation and replenishment in the store. It is conducive to tracking commodity information and ensuring the smooth workflow of the department.

Do you want to know the sales situation of refund if the style and color change? Whether it is not selling well or not, respond in time.

A "Inventory of the day" = inventory of the previous day+purchase-return-sales+refund.

By analyzing the inventory of each category on that day, combined with the sales situation, determine the transfer-in/transfer-out quantity and the number of pieces. If the inventory of good goods is insufficient, you need to apply for transfer-in; For products with large inventory but poor sales, apply for transfer or inclusion of main products.

Replenishment quantity = estimated daily sales (average sales in the past period) × turnover days-on-hand inventory-goods in transit.

B. Check the books of the following items daily:

Observe which models sell well, fill in the column of "best-selling models", and at the same time, according to the inventory situation,

Conditions (delivery cycle) determine the quantity and number of pieces transferred; What are the unsalable funds? According to the inventory and actual sales, the unsalable funds will be used as "main commodities" or applied for "transfer out" tomorrow.

Observe the inventory details-whether the colors and sizes are complete, and whether some models are about to lose color and code? In the case of applying for replenishment in time, all shop assistants should know which models are about to lose color and size, and what sizes and colors of goods are available now, which should be emphasized in the product promotion process.

Transfer-in/Transfer-out: under the premise of ensuring safe inventory, adjust goods and make transfer-in and transfer-out plans.

For example, if the exhibition volume of Meng Qing store is 1000 pieces (500 pieces), the daily sales volume is 15 pieces, and the delivery cycle is 1 week, then the safety stock of Meng Qing store is = (1000+15 * 7) ×. Then, on the premise that there are 500 products 1 160 products, we will apply for transferring them to our best seller. ※.

Transfer-in quantity/quantity: best-selling, the current quantity is not much; Broken code, can also be sold, need to complement; Group purchase, large quantity, need to transfer goods.

Transfer-out quantity/quantity: it sells well, but it is estimated that it will not sell that much in the next stage; Slow-moving, inventory is still very large); Be informed to transfer the goods.

4) Market management

A. Best-selling commodity management: excluding the subjective guiding factors of shopping guide on the same day, commodities with large sales volume; Feedback the price, style, color and style of the best-selling goods.

B. Management of main products: Generally speaking, it refers to products that are not popular and must be vigorously promoted. General inventory is large. Let the store manager work out the main products in different periods according to the store inventory and the company's publicity policies to increase sales and avoid inventory.

C, customer complaint handling:

Doing business should not only create customers, but also retain them.

Listening to customers' complaints is by no means a pleasure, and sometimes it is verbose and boring. Therefore, there are often shop assistants who treat complaints as trouble, or turn a deaf ear, or just apologize modestly to deal with complaints. And specialty stores also think of customers' complaints as extremely simple, or ignore them or deal with them hastily.

In fact, complaints are extremely precious customer voices. Shopping guides should not blindly perfunctory, avoid or prevaricate customers' complaints, but should solve them positively in order to gain customers' trust.

Nowadays, customers go to specialty stores to buy multi-level needs, not just tangible goods themselves. Customers not only hope to buy satisfactory products, but also hope to get the care and respect of the reception staff. Whether customers can be retained depends largely on the realization of customers' expectations for business quality, the service attitude of shop assistants, the service attitude at the time of sales and the timely arrival of after-sales service. The key link is how the shopping guide treats, treats and handles customers' complaints, so it needs the clerk to solve them. If there is no way to solve it, it must be reported to the directly affiliated department and solved in time.

5), operation management

A daily operation report: daily work can be summarized, and notes and messages can be made in some columns to remind all departments to follow up.

B. Attendance management: reflect the situation of leave, business trip, leave and attendance of store employees, and provide the rationality of staffing and the rationality of manager's personnel management.

C. Maintenance of equipment/materials: List the equipment and materials that need to be maintained or supplemented in the store every day to facilitate the follow-up of daily affairs and ensure the normal operation of the store.

Every store manager is the owner of a home store. He should have unique management ability and be responsible for the overall preventive maintenance of store facilities. When he meets a problem, he will try his best to solve it himself. When it is really impossible to solve it, please ask the direct selling department for help.

□ Weekly and monthly sales management (see weekly sales report and daily sales report)

1), weekly report, monthly report, other reports, sales report analysis, comparison with last report analysis, style, quantity, sales volume, last sales volume and this best-selling style analysis.

A, analyze the reasons for the improvement or decline of performance.

B. Compare the performance of neighboring competitive brands and analyze the existing gaps.

C, analysis of existing styles, sales quantity, in order to formulate the gap of goods.

D, differences in styles, so as to make a sales plan.

2) Natural factors

First, the weather reasons

B the market environment of business circle, such as organizing activities, transforming shopping malls, building roads in business circle, etc.

C, the implementation frequency and effect of similar competitive brand promotion activities

3) "customer management" of customer files

First, collect customer information

B, establish customer files

Three warehouse management

□ What are "logistics", "reverse logistics" and "fast logistics"

Logistics is the physical flow form of goods from the place of supply to the place of acceptance; Warehouse is the center of logistics and plays an important role in logistics, buffering the uncertain factors of supply and demand; Figuratively speaking, the essence of warehouse is to like the new and hate the old.

The inventory of reverse logistics is the unsold goods (return, exchange) in the sales season or timetable.

The so-called rapid logistics response (OR) means that the flow of goods should meet the needs of customers accurately and quickly, and make correct and reasonable responses at any time according to the changing market conditions.

□ Orderly arrangement of goods

1), the goods should be arranged in an orderly way and be clear at a glance.

2) Commodities should be sorted: classified according to styles, colors and bar codes.

3) Best sellers should be placed on shelves that are easy to pick up at the entrance; Non-bestsellers can be ranked deep in the warehouse.

4) Try to put the same goods in the same place.

5) Set the placement position of the defective products to be processed.

6) If the goods are in cartons, please indicate the style, barcode, etc.

□ Safety stock

The reasonable setting of safety inventory plays an important role in the effective supply of goods and the effective avoidance of inventory for dealers and franchisees. There are several ways to set up safety stock for your reference:

1), calculation method of safety stock and replenishment:

A, ask franchisees to send their monthly sales data and current inventory quantity to the general distribution.

B. The general distributor calculates the suggested value of the franchisee's reasonable safety inventory according to the prediction formula. The specific calculation method is as follows:

Example: Let's start with 1 month. ※

A= 1 month safety stock value

B= monthly sales.

CI = one month's safety stock.

Then C 1=A 1.

C2=(A 1+B 1)×2/3

C3=(A 1+B 1+B2)×2/4

C4 =(a 1+b 1+B2+B3)×2/5

………

CI =(CI- 1+∑BI- 1)×2/(I+ 1)

According to the different conditions of franchisees, the general distributor sets a safety stock value at the initial stage. After putting into operation, the general distributor calculates safety stock suggestions, and participates in the actual situation (such as promotion or seasonal factors) to make corresponding modifications and issue them to the distributors.

C. The franchisee will take the suggested value of safety stock given by the general distributor as the participation, and formulate the quantity of personal safety stock. And calculate the replenishment quantity and set it as X.

Replenishment quantity X= suggested safety stock value+in-transit stock quantity-current stock-on-hand stock.

D after receiving the dealer's replenishment order, the general distributor will measure whether the dealer's replenishment quantity is reasonable, and set it as y according to the remaining inventory quantity of the franchisee and the suggested safety inventory value.

Z=(Y-X)/Y× 100%

If z is -20% or +20%, the distributor's replenishment quantity is reasonable and can continue.

2), 1.5 times the safety stock rule

The above franchisee inventory setting and analysis is a bit complicated, and it depends on the accurate transmission of total distribution and franchisee data, which requires a relatively perfect terminal operation system. In actual operation, the law of 1.5 times can also be applied. The specific formula is as follows:

Reasonable purchase quantity = [(last inventory+last inventory)-current inventory ]× 1.5 times-current inventory.

3), according to the actual sales:

Reasonable inventory = (store display+average daily sales × sales cycle )× (1+5%) [continuous rising period]

Reasonable inventory = (store display+average daily sales × sales cycle )× (1-5%) [continuous decline period]

Reasonable purchase quantity = reasonable inventory-store display amount

4) Store replenishment

Estimated replenishment quantity of storefront = estimated daily sales × turnover days+store on hand-goods in transit

The above calculation method of safety stock, the actual situation of franchisees and general distributors, and the convenience of work, choose a calculation method, but pay attention to the fact that after choosing one, you must continue to use this method to ensure the correctness of sales work.

□ Continuous inventory of goods

1), operation method: the displayed goods shall be counted once per shift, and the Handover Inventory Sheet shall be filled out for each count, which shall be signed by the supervisor on duty for confirmation. If mistakes are found, the person in charge on duty should compensate according to the retail price of the goods owed and issue a sales order.

2) Operation time: once in the morning before business, once in the morning before work and once in the evening.

3), inventory operation:

First, the significance of inventory work: every successful inventory is an indispensable part of the daily management system of the store. The significance lies in: it can let the boss know the operating expenses and profits of the month in time and accurately; In addition, inventory can support and control commodity information in time.

B, the operation process of inventory work

Preparation before inventory:

The store manager partitions the whole store, marks the partition code in the conspicuous position of the corresponding shelves, and the clerk sorts out the goods area, which is classified as leak-proof tray, less tray and wrong tray.

Copy the inventory table: clearly write down the commodity name, commodity number, unit price, quantity and amount, and copy the inventory table according to the planned inventory list to ensure that the counted goods are consistent with the actual display order. The last two lines of each inventory table are required to be left blank to prevent leakage and make up in time.

B inventory process: the initial point is carried out by the person in charge. The result of the initial point should be recalculated. If you need to change the initial points, you are only allowed to correct them by crossing, and you are not allowed to alter them, so as to ensure the cleanliness of the inventory table and implement the responsibility system.

Aftercare of position C: After the inventory is completed, first restore the original display state, clean the aisle and replenish the goods, and prepare to continue normal business. Then, by looking at the data in the inventory table, we can find out whether there is any commodity information in stock and replenish it in time to avoid the phenomenon of artificial shortage.

D if it is a monthly statement, the result should be communicated with the branch manager, and the manual account of the store should be checked with the computer account of the branch. If any items are lost, compensation will be made according to the regulations, and the exclusive stores managed by information technology will be counted in strict accordance with the provisions and requirements of the software program.

4), large-scale inventory

Generally, the overall inventory is once every two months or 1 month, while the large inventory is normally done 2-3 times a year.

Inventory principle: the accounts and goods are consistent, and the accounts and goods are consistent.

Verb (abbreviation of verb) financial management (balance sheet and income statement)

□ Asset management ratio

1) inventory turnover rate

Inventory turnover rate = product sales cost/[(beginning inventory+ending inventory) /2]

Significance: Inventory turnover rate is the main index of inventory turnover rate. Increasing inventory turnover rate and shortening business cycle can improve liquidity.

The analysis shows that the inventory turnover rate reflects the inventory management level. The higher the inventory turnover rate, the lower the inventory occupancy level, the stronger the liquidity, and the faster the inventory can be converted into cash or accounts receivable, which affects the short-term solvency.

2), inventory turnover days

Inventory turnover days =360/ inventory turnover rate

=[360× (beginning inventory+ending inventory) /2]/ product sales cost

Significance: the number of days for an enterprise to purchase inventory, put into production and sell. Increasing the inventory turnover rate and shortening the business cycle can improve the liquidity of the company.

The analysis shows that the inventory turnover rate reflects the inventory management level. The faster the inventory turnover rate, the lower the inventory occupancy level and the stronger the liquidity, and the faster the inventory can be converted into cash or accounts receivable. Not only affect the short-term solvency.

3), accounts receivable turnover rate

Accounts receivable turnover rate = sales revenue/[(opening accounts receivable+closing accounts receivable) /2]

Significance: The higher the turnover rate of accounts receivable, the faster the recovery. On the contrary, it shows that the liquidity in accounts receivable is too sluggish, which affects the normal capital turnover and solvency.

According to the analysis, the turnover rate of accounts receivable should be considered in combination with the operation mode of enterprises. Using this indicator can not reflect the actual situation in the following situations: first, enterprises that operate seasonally; Second, the installment settlement method is widely used; Third, a large number of sales settled in cash; Fourth, a large number of sales at the end of the year or a sharp decline in sales at the end of the year.

4) Business cycle

Business cycle = inventory turnover days+average collection cycle.

= {[(opening inventory+ending inventory) /2]×360}/ product sales cost+{[(opening accounts receivable+ending accounts receivable) /2]×360}/ product sales revenue.

Significance: The business cycle is the time from acquiring inventory to selling inventory and recovering cash. Under normal circumstances, the short business cycle indicates that the capital turnover speed is fast; The long business cycle indicates that the capital turnover rate is slow.

Analysis hint: Business cycle should generally be analyzed together with inventory turnover rate and accounts receivable turnover rate. The length of the business cycle not only reflects the level of asset management, but also affects the solvency and profitability.

□ profitability

Profitability is the ability of an enterprise to earn profits. Investors and debtors are very concerned about this project. The following are several important projects, which are analyzed as follows:

1), net sales interest rate.

Net profit rate of sales = net profit/sales revenue × 100%

Significance: This indicator reflects the net profit per yuan of sales revenue. Income level representing sales revenue.

The analysis holds that while increasing sales revenue, more net profit must be obtained accordingly, so as to keep the net sales interest rate unchanged or improve. The net profit rate of sales can be decomposed into sales gross profit rate, sales tax rate, sales cost rate and expense rate during sales.

2) Gross profit margin of sales

Gross sales margin = [(sales revenue-cost of sales)/sales revenue ]× 100%

Meaning: It means how much money can be used for expenses of each period after deducting the sales cost from each yuan of sales income, thus forming a profit.

According to the analysis, the gross profit rate of sales is the initial basis of the net profit rate of sales. Without a large enough gross sales margin, it is impossible to form a profit. Enterprises can analyze the gross profit margin of sales on schedule, so as to judge the occurrence and proportion of sales revenue and sales cost.