Unit Sales

AAA

DEFINITION of 'Unit Sales'

A measure of the total sales that a firm earns in a given reporting period, as expressed on a per unit of output basis. Typically, when using or analyzing a unit sales figure, it should be based on a physical product, such as the number of tons of coal sold, rather than on the number of services rendered.

INVESTOPEDIA EXPLAINS 'Unit Sales'

Unit sales, which is a top-line item, is a useful figure for analysts because it enables them to determine average product prices and find possible margin pressure.

For example, assume XYZ Corp. has $250 million in revenue and it sold 5 million units. By taking the ratio of the two ($250 million/5 million), an analyst can see that the average selling price is $50 per unit. Suppose that in the next reporting period, that same firm had an average selling price of $48. The analyst could see this as a red flag, which could warrant more research into the firm.

RELATED TERMS
  1. Long Tail

    In business, long tail is a phrase coined by Chris Anderson, ...
  2. Comps

    A buzzword that refers to a retail firm's comparable same-store ...
  3. Top Line

    A reference to the gross sales or revenues of a company, or an ...
  4. Analyst

    A financial professional who has expertise in evaluating investments ...
  5. Income Statement

    A financial statement that measures a company's financial performance ...
  6. Contribution Margin

    A cost accounting concept that allows a company to determine ...
Related Articles
  1. Fundamental Analysis

    Great Expectations: Forecasting Sales Growth

    Predicting sales growth can be something of a black art, unless you ask the right questions.
  2. Markets

    How To Use Price-To-Sales Ratios To Value Stocks

    Take a look at how this effective ratio can be influenced by certain critical factors.
  3. Forex Education

    Understanding The Income Statement

    Learn how to use revenue and expenses, among other factors, to break down and analyze a company.
  4. Investing

    Doing More With Less: The Sales-Per-Employee Ratio

    If used properly, this ratio can give you insight into a company's productivity and financial health.
  5. Economics

    Where is cost of living lowest in the world?

    Learn how the cost of living is the lowest in India based on numbers derived from the CPI and organizations like Expatistan and Numbeo.
  6. Economics

    Economics Basics

    Learn economics principles such as the relationship of supply and demand, elasticity, utility, and more!
  7. Investing

    Opportunity Cost

    Every action has a cost, even the ones you don't pursue. Find out how this is calculated.
  8. Fundamental Analysis

    How Influential Economists Changed Our History

    Find out how these five groundbreaking thinkers laid our financial foundations.
  9. Economics

    How Fannie Mae And Freddie Mac Were Saved

    These mortgage giants had to be put under government conservatorship, driving home the gravity of the subprime crisis.
  10. Economics

    The Economics Of Labor Mobility

    Loosening labor restrictions has both good and bad effects for a country and its workers.

You May Also Like

Hot Definitions
  1. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  2. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  3. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  4. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
  5. Break-Even Analysis

    An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even ...
  6. Key Performance Indicators - KPI

    A set of quantifiable measures that a company or industry uses to gauge or compare performance in terms of meeting their ...
Trading Center