Analysis of sold products

Paste your data

First column — product name, the others — sales amount per month (or other period). In Excel: select the cells → Ctrl+C → paste here Ctrl+V.

✔ The result updates automatically as data is entered

What data works?

One column is enough (total sales of the product) — you will see which products generate the sales. With 3 or more periods (e.g. 12 months) you will also see how stable the sales are. A header row can be pasted too — it will be recognised. Tab- and semicolon-separated data both work; amounts may contain a € sign or a decimal comma. When typing manually with spaces, do not use a thousands separator (write 1200, not 1 200).

Data is processed on the server and is not stored.

How to read the results

A / B / C — A: products that together generate 80% of sales; B: the next 15%; C: the last 5%.

X / Y / Z — stability of sales (coefficient of variation): X ≤ 10% — stable; Y 10–25% — variable; Z > 25% — irregular, hard to predict.

Most important products — AX and AY: high sales and predictable demand. They must always be in stock.

How to prepare your data

Step 1. Get the sales report

Ask your accountant, or export from your accounting or inventory system, a report showing how much each product was sold. Almost any system can do this: a sales report, a product turnover report, a sold items report. What you need is: product name + sales amount per month (or per week, per quarter, any period you prefer).

Step 2. Make a simple table

In Excel or Google Sheets, make a table like this:

Product	Jan	Feb	Mar	...
Coffee beans 1kg	1180	1250	1210	...
Milk 1L	640	660	610	...

One product per line.
First column, the product name. All other columns, the sales amount for each period.
Use money amounts (revenue) rather than piece counts where possible, it shows which products actually bring income.

Tip: even one column is enough, just the total sales of each product. You will still get the ABC analysis. But if you give 3 or more periods (for example, 12 months), you also get the XYZ stability analysis.

Step 3. Copy and paste

Select the cells in Excel, press Ctrl+C, click in the calculator's text area, press Ctrl+V. That's all, the analysis appears automatically. You can paste together with the header row ("Product Jan Feb ..."), it will be recognised and skipped.

Good to know:

There is an opinion that 20% of products creates 80% of revenue (sales).
Don't worry about missing months for some product, empty cells count as zero.
If a product is written twice (for example, in two different rows), the calculator automatically adds them together.
Nothing is saved, the data is used only for the calculation.

ABC/XYZ analysis: how to use the results

ABC/XYZ analysis helps a business manage its product range and inventory based on two factors: the financial importance of each product and the stability of its sales.

ABC analysis identifies products that account for the largest share of total sales. XYZ analysis shows whether sales are relatively stable or fluctuate significantly. Combining the two classifications helps determine which products need the most attention and how inventory replenishment should be planned.

What does ABC analysis show?

A products account for the largest share of total sales. Their availability and sales performance deserve particular attention.
B products make a moderate contribution to total sales and generally require regular monitoring.
C products account for a relatively small share of total sales. It may be worth reviewing their inventory levels and the costs of managing them.

This calculator uses cumulative sales shares of 80% and 95% as the boundaries between the ABC groups. These thresholds are common conventions, not universal rules. ABC classification is based on sales value, not profit.

What does XYZ analysis show?

X products have relatively stable sales, making demand easier to forecast.
Y products have more variable sales, so purchasing plans may need more frequent adjustments.
Z products have highly variable or irregular sales, making demand more difficult to forecast.

The calculator measures sales variability using the coefficient of variation (CV), which expresses the standard deviation of monthly sales as a percentage of their average.

The calculator uses the following thresholds:

X: CV of 10% or less
Y: CV above 10% and up to 25%
Z: CV above 25%

These thresholds are conventions and can be adjusted to suit the business. The calculator analyses monthly sales values. If prices change, revenue may fluctuate even when the number of units sold remains relatively stable. For inventory planning, quantities sold may therefore provide a more useful measure.

How to use the combined ABC/XYZ classification

Combining ABC and XYZ gives nine product groups. Each group can be managed differently, depending on its contribution to sales and the stability of demand.

AX — high sales contribution, stable sales. Monitor product availability and plan regular replenishment.
AY — high sales contribution, variable sales. Review sales trends and adjust purchasing plans more frequently.
AZ — high sales contribution, irregular sales. Investigate the reasons for fluctuations and be cautious about committing to large inventory quantities.
BX — moderate sales contribution, stable sales. Use standard replenishment procedures and review stock periodically.
BY — moderate sales contribution, variable sales. Monitor sales and revise purchasing plans when necessary.
BZ — moderate sales contribution, irregular sales. Consider smaller or less frequent orders where appropriate.
CX — low sales contribution, stable sales. Use simple replenishment procedures and proportionate monitoring.
CY — low sales contribution, variable sales. Review stock levels and avoid holding unnecessary inventory.
CZ — low sales contribution, irregular sales. Consider whether the product should remain in the range or be ordered only when needed.

These are starting points, not automatic instructions. Purchasing decisions should also take into account supplier lead times, minimum order quantities, profit margins, storage costs, the consequences of stockouts and the strategic importance of each product.

How to apply the results in practice

Identify priority products. Review A products first, considering their availability, supplier reliability and the consequences of running out of stock.
Distinguish stable from irregular sales. AX and AZ products both belong to the A group, but their sales patterns may require different purchasing approaches.
Review inventory tied up in products with low sales. Pay particular attention to CZ products. However, low sales alone are not sufficient reason to discontinue a product.
Adjust purchasing and monitoring procedures. Products with different classifications may need different replenishment frequencies and levels of control.
Repeat the analysis periodically. Recalculate the groups as sales patterns change. For seasonal products, use a period that adequately represents their seasonal cycle.

What ABC/XYZ analysis does not tell you

ABC/XYZ analysis is a useful starting point, but it is not a complete inventory or profitability model. By itself, it does not calculate profit, optimal order quantities, reorder points, safety stock or inventory holding costs.

For better decisions, combine the results with other information, such as gross profit margins, inventory turnover, supplier lead times, minimum order quantities, the cost of stockouts and the age of existing stock.

The main benefit of ABC/XYZ analysis is that it provides a clearer basis for deciding which products require more attention and where inventory management procedures may need to differ.

From classification to decisions

ABC/XYZ analysis reveals where your revenue comes from and how predictable it is. But what does it mean for your purchasing budgets, pricing, stock levels, and cash flow?

That is where I can help. Through strategic financial analysis, budgeting, and cash flow forecasting, we can turn data into concrete rules. By looking at a broader financial analysis of your business, we seamlessly combine your ABC/XYZ results with margins, costs, and cash flow to guide your next moves.