Hi,
Just wanted to know how would we calculate the volume of sales for a company that sales a variety of product, say for e.g colgate, which has about 4 different products and many more subcategories. In this case how do you define volume?
Also in the same case how do you define whether price increased or decreased in a whole for all of your products, is it just the sum of price of all goods(Taking one unit per each product type)?
Thanks
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For #1: I would say it depends on the question. Usually you just take the overall sales figure that is on top of your income statement. However, in 10K filings you mostly find segment reporting where sales are split up in different divisions.
Maybe you should write the exact question in here to clarify.
For #2: I dont know what you are trying to say. Maybe you want to post the original question in here.
ASP * Vol
Hi folks,
Thanks a lot for the replies..here is some more detail, I am actually trying to build a DCF of colgate. To project the top line for next five years I have decided to use regression analysis to forecast the growth of underlying metrics which support the actual top line (from the 10K of the colgate, the important fundamentals that drive the top line are the volume, the price and the currency rate).
1) Volume Sold
Now the question that I have is how do I know the actual volume? (it is not in the 10K or in any investor presentation that colgate has put up). So when a company sells more than one product, how do you determine the total volume sold? So you simply add the volume (as in quantity sold) of various products or am I doing it incorrect.
2) Price
The same question applies here as well. How do you determine whether your pries went up of down when you have multiple products and prices of some product go up while the prices of others go down?
( do you just add all the changes??)
Thank you for the valuable inputs!
Hi Couchy,
Thanks for the reply, by ASP I hope you mean Average Selling Price(or is it something else?). How do I get ASP (colgate has hundreds of products in many countries) how do you calculate ASP for such multinational ? Is there a method?
Thanks for your comment
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