Friday, July 3, 2009

Retail Math - 1

As work progresses on my new web-site (will announce later), I noticed we have never touched on the basic fundamental Retail Math. I will post basic formulas that are used in Retail and hope you will benefit from them.

Profit / (Loss) = Gross Margin – Expenses

Expense % = Expenses (Rs) / Net Sales (Rs)

Gross Margin % = Gross Margin (Rs)/ Net Sales (Rs)

Profit % = Profit (Rs)/ Net sales (Rs)

These formulas are used globally and are applicable to Indian Retail as well.

more later...


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