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How do you conduct a revenue analysis?

Asked 2 years ago

Hello everyone, I need some direction. I started a Shopify business and realized that I needed to keep better track financially. Any tips for doing a revenue analysis?

Chace Franco

Wednesday, February 16, 2022

Here is how to conduct a revenue analysis;

  1. Account for all the revenues or dales during the time period
  2. Add up all the costs of goods sold and subtract the total from the revenue to get gross margin
  3. Divide gross margin by total revenue and convert to a percentage. Compare the margins from previous periods and if it's an increase it means you're gaining high profits. Analyze also why the gross margin has changed from the previous years.
  4. Now add up the other expenses and compute them as a percentage of sales. Also, compute each cost as a percentage of sales and compare from previous periods.

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