Asset to Sales Ratio - Meaning, Formula, Calculations, Interpretation, Examples

Asset to Sales Ratio - Meaning, Formula, Calculations, Interpretation, Examples

Hello everyone hi welcome to the channel of WallStreetmojo watch the video till the end also if you are new to this channel then you can subscribe us by clicking the bell ican friends today we going to learn concept.

That is asset to sales ratio formula and will understand with the help of an example over here but first we are looking we have a formula over your assets to the sales ratio so absolutely the asset has to come up the total assets divided by your total sales but what exactly this ratio is all about so we'll learn that the asset to sales ratio formula indicates.

That how much your assets a company possesses in regards to your you can say it revenue it earns using its assets so the formula for the asset to sales ratio we just saw that asset to sales ratio will go something like this is your total assets divided by sales right so the asset to the sales ratio formula example will take so that you will have some idea regarding this particular concept now let's say there's a guy called John John wants to look at the RMB company it wants look at the RMB company and its assets to sales ratio so john finds out that at the end of the year the rmb company has its total assets standing at $40,000 and john also discovers.

That last year that rmb come me has revenue which is standing at $1,00,000 what would be the assets to the sales ratio of rmb so we'll simply put the data into the formula the asset to the sales the asset to the sales formula goes something like this is your total assets divided by your sales amount so or you can say or the asset to the sales ratio will be your total assets divided by revenue that's your sales so the ratio goes as there should be 4,00,000 so 4x so if you get to know the average assets.

To the sales ratio of this similar company under the same industry will be easily be able to figure out whether for over here as you can see is a good asset to sales ratio or not so basically it's called the comparable company you can say comparable parish in that you are doing basically which will help you to determine where exactly the original company is standing against the industry now the important part what we learn up till now is the formula we learned how to calculate with the help of numbers the next sort of thing which we have in our list is explanation part without this any ratio analysis is useless the asset.

To the sales ratio formula is completely opposite of the asset turnover ratio now in this ratio we compare the assets with the revenues of the company that generates like for example if a company has 1,00,000 in assets and its revenue in the current year let's say I'm talking about the revenue in the current here is let's say 50,000 then the assets to sales ratio would be 100000/50000 which is 2 right so to find out the assets.

You need to first what where do you exactly need to go for finding the assets.

You need to go to the balance sheet of the company and sometimes we need to consider both the beginning assets as well as the ending assets so if it is the average assets we need to do the average of this - sometimes you need to consider both of this any of this one depends in that case the answer to sales formula would would change to the the formula will go rather than the total assets it will change to average total assets this is the change that will come in the formula now for sales you need to look.

At the income statement income statement right you need to remember that sales over here it means your revenue and it has nothing to do with the profit of the year so look straight up in the income statement right now what exactly is the use of this particular ratio now see assets to sales ratio isn't isn't a common ratio actually and it's not very widely used it's not at all widely used however this ratio can tell a lot of thing about the company.

How exactly it is operating now let's say that you have an investor who is monitoring your assets to sales ratio of the company for let's say last 2-3 years and you saw that the company had an asset to sales ratio standing at 5 in the previous year this is the previous year data and in the current year the see why the ratio stands at six so how would you interpret it this can be possible with with two possibility this can be they can be passively two possible reasons the first reason behind the increase assets to sales ratio is the lack of proper utilization of the company's assets.

All right for you lack of companies or lack of proper utilization of the company's assets now if the revenue is not increasing over here or not increasing in the pace of the increasing of the assets then the assets of the company are you can say underutilized right the second reason the second reason can be due to the installation of the new machinery that can be the second reason right so the sales could not be increased so as a result you may see and you can see an increase in the asset to sales ratio right so as an investor you should always always always look at the asset.

To the sales ratio to ensure that the assets are you can say the asset should be properly utilized and - in short I mean and to make sure that the revenue of the company has been increasing the revenue of the company are increasing at a decent rate so otherwise how would you ensure that you would be able to earn a decent return on the investments now this is your asset to sales ratio calculator you can go and find you can check this out the total assets over here will be will be punching on some numbers so as to get some really good interpretations out of the same the total assets is let's say 1 million and your total sales is standing at let's say or rather than.

I'll just make this 2 million and I'll make the sales as 1 million so what's going to happen the asset to sales ratio is 2 times so we can say that because the total assets it doesn't change that frequently as the sales sales is a quite of variable thing so keeping your total assets as you can see same if your revenue or the sales increases then let's see what exactly happens to the ratio if you if we increase this to 2 then your asset to sales ratio will go down that is it will reduce and keeping this as same if we decrease this amount or if if it decreases then the ratio will go up so try and make your own numbers try punching.

In the numbers and come up with some really good conclusions out of the same so that's it for this particular topic if you have learned and enjoyed watching this video please like and comment on this video and subscribe to our channel for the latest updates thank you everyone Cheers...

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The PERFECT Lead Generation Strategy to Find Dream Clients in B2B Sales 2022 Tech Sales SaaS Sales

The PERFECT Lead Generation Strategy to Find Dream Clients in B2B Sales 2022 Tech Sales SaaS Sales

Hey what's going on everybody so in this video we're gonna be talking about my best lead generation strategies to get more meetings with your dream clients and close more deals now if you're ready for this video make sure to give it a like subscribe and turn on notifications and let's go ahead and dive in so lead generation is the topic of this video and i've been thinking about this quite deeply over the last few days because i feel like a lot of people are out there they're sending a lot of code emails making.

A lot of cold calls but then really not getting that much traction and they're wondering what's going on how come nobody wants to buy my product service now the people who are you know entrepreneurs solo entrepreneurs coaches or consultants or selling like something as a small business or startup typically these people will have the most trouble especially let's say if you're even a salesperson working at a tech startup you will also have this problem as well right.

So pretty much any brand that's not established will always have this problem so here's the thing a lot of times why people are not getting the meetings that they want with their dream clients is that they actually don't know who their dream clients are they're kind of just thinking like oh like nike and adidas and like salesforce would be a perfect customer for me but are they really right just because they're big brands and they have a lot of money.

It doesn't mean you are the perfect solution to their problem right and so the first thing i would actually think about is for your product and service you know what industry you're going for and do they actually have money to buy your products and services if because if they're not looking for those products and services then it's kind of like what's the point of actually trying to reach out to them right so imagine you're selling like luxury office chairs right so like office chairs you know but like super high-end imagine you were trying to sell it to small medium marketing agencies in alabama or wherever right like are they really purchasing these things probably not you know and probably you need to move to a different area where people are willing to spend the money.

For that so the first step whatever your product and service is understand who your market is do they have money to purchase your product and service and what pains do they have that your product and service actually solves because if it doesn't solve any pain you shouldn't expect anyone to respond to your email because it's like well what's so special about it right it's just like you're not solving a problem so always look for problems that you can solve if you're not solving a problem you probably need to switch your product and service switch your offer offer something different that people actually care about then your response will skyrocket right so you know.

If you're selling a bad product and you're sending it to a million email addresses and nobody responds well the reason is because whatever you're selling nobody wants right and so you have to change the thing that you want especially if you are an entrepreneur or coach or consultant or somebody that has to create their own services or package because you can just switch your offer and then everything changes your your response rates will increase right so that's going to be very important for you guys especially if you are starting something new like an agency or something like that right and.

So for me personally you know i've been really involved in the crypto and the nft space and i actually started a different youtube channel called parallax if you didn't know you know in this space it's kind of like there's so many problems and challenges that people face every single day that all these new agencies are suddenly like starting to pop up it almost feels like when social media came out and everybody had a social media agency and they would just go to like local restaurants and be like.

Hey we'll get you on facebook and like people pay money for that it's the same feeling for like you know web3 and like crypto and nfts so like there's a lot of these agencies that just pop up and they're like hey we'll do this thing that's super easy to do pay us like 10k to do it we'll get it done right and they can go to all these companies that have no idea how to do it they have money but they're willing to pay a professional to do the job and so for these kind of agencies that are popping up the reason why they're doing so well even though they're just starting out is because they're in a market that has a lot of money that's willing to pay and they solve a specific problem and they could solve that problem very fast.

So if you can do all those things and there's not much competition it's going to be so much easier for you to generate leads and close more deals so really reflect on the product that you have in the customers that you're serving you know are you really selling something that people actually want or are you selling something that you know it's a commodity and everybody does the same thing and you're basically screaming at the top of your lung to get attention and nobody listens.

To you right because a lot of times you know to be successful in life it's really just going for the right opportunity and if you're swimming uphill you can still be successful but it's like 10 times harder but if you're going downhill and in a good way where it's like there's so much momentum everybody's buying there's so much money in the space similar to like crypto.

And nfts then it's just so much easier right so industry that matters product matters what your offer is matters and then when you get all those things right and you tie it to a specific customer that has money it just makes it so much easier to generate leads so you know if you're like let's say a social media marketing agency for real estate agents it's like okay well how many are there that exists in your town right probably a lot so like maybe the opportunity is not as good and maybe you need to shift but if.

You want to stick with that then it's harder but you have to be the best at what.

You do otherwise you're just like everybody else now another issue that people have is they're gonna say like oh well my product is for everybody so how do i decide who i should be selling to right and how you want to think about that is you want to like narrow down your niches and narrow down your campaigns let's say you're selling web development services right you like build websites or you do like back-end stuff right well technically everybody needs a website.

But it doesn't mean you should reach out to everybody so what i would recommend is that if you specialize in certain areas for example if you were the master of like back-end web development for nft projects for example then that would be something very specific and you could build a reputation of that and be the go-to person right but actually also seeing in the nft space there are people who are starting to specialize in security software for discord which is like a very niche thing right and so like they can create products and not even have a website.

Not even have a white paper or no nothing right and they just like hit you up on twitter like yo do you want some security for your discord sure it's gonna be like 5k okay cool here's my money boom done like i literally did that the other day and don't even know who this guy is don't even know if they have a company don't even know if they're gonna keep doing this for the next year or not it's like lifetime access but because.

They're solving a specific problem they're early to a market and they're known in the space and like really known it's just like you've been doing it for like two months in nfts i'm willing to pay like thousands of dollars for this kind of security to keep my community safe right so yeah so that's an idea of like niching down and going for a specific market and being the best at what you do a lot of times people like try different campaigns for different markets and that can work it depends on what your product and service is but i find that specializing in being the go-to person whether it's a guy or gal that is the way to go now if you are selling something.

To many different markets and you're working in a large company and that's what they want you to do here's another strategy so you don't get to control like your branding because you work at a company right and they control that you're just the person that generates leads and close deals so in those situations you just want to narrow down like who you can potentially sell to and then do campaigns of like 20 different companies in that you know ideal customer profile and then test it out so if you're like all right today.

I'm going to go for dentists in california who make 1 million dollars in revenue then let's go ahead and hit them up right you find all the dentists that fit that category and you hit them all up if it works great then you go to another state and you have the same category but just a different state and you do it again and you repeat it you repeat it now if it doesn't work you just adjust some things you say okay i'm not gonna go for dentist let me go for chiropractors instead but everything else stays the same then you test it out so it's like you're basically just testing testing testing testing until something actually hits.

And something resonates with your offer and that market and when that happens then you're on your way because you're finding a niche you can dominate in it and then you can just push push push push push until you saturate the entire market and then you move to the next thing right and so that's typically how it goes now you might be wondering okay sounds great patrick you got all the strategy down well how do you actually reach out to these people right so should i use a code email should i use linkedin should i use twitter like.

I heard that was cool you know okay so here's my thought on it you want to go where people are so depending on who your customer is and where they hang out that's the place you want to go so if you're going for like very local small medium businesses in like nebraska then maybe like cold email is the way to go because maybe they're not hanging out and so on social media right but if you're selling into crypto and nfts and like web3 and like the whole like tech world well twitter is really good right and i've done a lot of business on twitter and and i bought products and services and thousands of dollars over twitter and that's the place to go because for nfts and crypto.

That's where it lives right and discord as well but if you're like doing working at oracle and you're selling like b2b enterprise software and you want to sell into hospitals these people aren't going to be on twitter they're going to be on linkedin and you know they're going to respond to a cold email they're gonna respond to uh cold calling right so that's the channel you go for that way right in crypto you can't cold call anybody because like half.

The people aren't anonymous so you don't even know their name so it's like you want to go where the people are and then you just want to focus on mastering that area of communications so if you find that in your specific market that like cold email works extremely well double down cold email and get more meetings right you don't have to do cold email linkedin facebook and every instagram all at the same time because you're spreading yourself out too thin find one channel that works and repeat it until it's just like it's just a machine that just generates leads.

And then from there if you want to add another channel which is a lot of work then add another channel right but you shouldn't do 10 channels at once because you're not really like focused like a laser and it's not going to break through and you're just going to be noise and you want to be that signal right so i would say focus on one channel that really works um anybody that says like oh i do this and then like you don't see them generating closing deals you know.

It's like they're doing a lot but they're not really doing anything and i don't want that to happen to you so if you've got cold calling you're a master at it cool call you cold emailing that works for you cold email if you can do both at the same time great props to you you know what i mean but you don't have to be on cold call code email linkedin and all these things because it's very difficult to manage like five different platforms at once i think that most people can do like three at most probably like one or two realistically and i would actually just hyper focus.

On the things that work for you double down and just run the numbers up so the final tip i have for you is that whenever you find one good customer or one good meeting or you close one good deal when it comes to lead generation what you want to do is you want to replicate that success so if you found that crypto companies who are startups and they're looking to launch a project that's the niche for you then you know and you had a good meeting with this person and you close the deal find more people that fit the ideal customer profile right and i'm only talking about crypto because that's kind of what i've been doing for for a while especially in the past few months uh so if you hate crypto you know whatever.

But it's just the industry right so essentially when you find one good customer replicate replicate replicate and then when you find one bad customer understand like okay well i didn't really like working with this person they paid me but then i don't want to find more people like that let's find more people that actually are fun and good and they're easy to work with right so whenever you see something that works please write it down please you know analyze every single thing about that customer.

Of why they are a good customer and then replicate that success and try to find more people that fit the bill the more people you can find you know the better basically your ideal customer profile gets meaning that over more customers you serve you start to understand like okay these are the people that we want right so i remember when i used to work at lab which is a startup during my first week there the first thing they did was like they're like all right look patrick these are our top 20 customers we want more people like this so like whatever these people are analyze it figure.

Out like why is it that they love our product and services and find more people like this right and at the time the company i worked at they had like thousands of customers but they said like only focus on the top you know 20 because those are the ones that drive the most revenue and a majority of the revenue for the company so i'm like all right bet like i will find more companies like this right and so when i'm reaching out to people i'm thinking do they fit the bill if not why am i reaching out to them right always try to replicate your success.

Because it's like it's hard to find something that works when you do find that needle in the haystack double down double down double down and then expand and dominate that particular niche because that's how you win the game so that's it that's everything that we got to cover when it comes to lead generation if you enjoyed this video make sure to give it a like subscribe turn on notifications and i will see you guys in the next one....

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B2B Lead Generation Strategies - The Top 3 Strategies To Generate More Business To Business Leads

B2B Lead Generation Strategies - The Top 3 Strategies To Generate More Business To Business Leads

What's going on? Everyone on Ravi Abuvala, the founder of Scaling With Systems and in this video, I'll be walking you through the exact strategies that you can use. And we show our clients in order to generate not only leads for your business, but leads for your business that consistently convert. Now, before I go any further, I want you guys to understand two key things. The first is that this video is going to be chock full of very helpful information.

However, the real key strategy here is you take one to two different strategies I'm walking through and you take those and implement those in your business first instead of trying to do everything at once.

And the second thing is that you might not have a lead problem in your business that we see with a lot of clients. You might actually have a bad product market fit. So make sure that people are actually paying you for your product or service and people actually want it. And you might need to ask yourself some real cold, hard questions before we move into asking total strangers for their money.

There has never been more noise in the marketplace than there is now.

There are literally thousands of people that are battling for the attention of your ideal prospects. At the same time that you are. One of the key things that we found to help both Scaling With Systems and our clients out is to make sure that your key service or product is needed in the marketplace. And you have case studies and testimonials to back it up.

That helps you cut through the noise.

If you were to go to our website ScalingWithSystems.com And check out ScalingWithSystems.com/review or ScalingWithSystem.com/rtb which stants for Ring The Bell or even ScalingWithSystem.com/blog. You will see literally hundreds of video testimonials, thousands of screenshots of our successful clients. And on top of that, key pieces of content that shows that I know what I'm talking about. That shows that we have something that the product or market wants. And that proves me as an authority in our marketplace.

If you don't have one or two key pieces of content yet or you don't have any case studies or testimonials from happy clients, then I'll really ask you to actually pause this video and exit this video and go call up to your current clients, get some video testimonials, get some written testimonials, and spend 15 to 20 minutes creating a really solid piece content that answers your client's questions and positions you as theauthority. All right. So without further ado, let's dove right into this.

The first and ideally my favorite way of generating new leads for your business to business...business. I know. I know. cold email doesn't work, no one opens my emails.

I can't get anybody to message me back. Cold Email is the lifeblood of any business to business lead generation campaign. And to be honest with you, if I had a nickel for every single time one of my clients told me cold email doesn't work. And then we show them how to do called email and they made money from it. I wouldn't even even make these YouTube videos anymore.

Both my clients and myself had made totally tens of millions of dollars through cold emails. So there's no way that you can sit here and tell me that cold email doesn't work. Now, there are some real key factors to a successful cold e-mail campaign. Number one is the quality of the leaves that you're actually getting. So where are you getting these email addresses from?

How quality are they? Does everyone else have access to them? So everyone's sending them the same message.

Are they from some kind of gated source, meaning they're harder to get? And are they from a list of people that are a lot more likely to have money or likely to be in a position to buy from you versus just everybody out there?

Right. So the quality of where you get the emails, matter. Number two is the amount of messages you're sending a day. If you send five emails a day, it's going to take you a very long time to get any kind of meaningful response, any kind of meaningful discovery or qualification calls and any kind of meaningful client from it. So, like insider of Scaling With systems we have virtual assistants that send one to two thousand emails a day for our clients so we can make sure we get the ball rolling really quickly.

Third, really key component of a successful cold e-mail campaign is actually going to be the number of days that you're sending these cold emails. All the time. I hear people say, oh, cold email doesn't work for me. And in reality, they send 10 e-mails a day for five days. They didn't get a response and they gave up.

In five days, sometimes people have even opened their email in five days. They haven't had a chance to respond back in time. The key is to actually make sure that you're setting enough messages a day and you're sending it over a long period of time to actually gauge results. And finally, of course, is the content of the campaign, the content of the message itself. So what are you sending these people?

Is it written correctly? Is it this long form thing that's all about you and how you're the best person the world? Or are you making it short, concise, framing yourself as an expert in authority and on top of that, showing how you can help the end user or your client? So if I can give you one recommendation to get a successful cold email campaign, it's like what we have our clients do.

 

We give them a fully trained virtual assistant.

They said one to two thousand cold emails a day with our proven scripts and templates. They do it 365 days a year and they get it from really high quality lead sources. And you can imagine why our client made literally tens of millions of dollars from it. Now, my second favorite lead generation tool and honestly, it's very quickly becoming my first favorite lead generation tool is something called LinkedIn. LinkedIn is honestly, in my opinion, the best thing since sliced bread.

And as somebody who doesn't eat a whole lot of sliced bread, I'd say it's probably better than sliced bread.

I have generated an insane amount of leads from both Facebook and Instagram using my profile on outbound messages. But then when LinkedIn came out and said, hey, we are going to put all of your target client avatars in one area and they're going to actually be expecting to receive messages and pitches from you. I actually broke down and started to cry. There's a saying in some of the circles I hang around in, if you want to get girls, you can be Instagram famous.

If you want to make money, you can be LinkedIn famous. Make sure you have a really high quality LinkedIn profile and a message that resonates with your target market. I've actually created two separate videos on that that I'll link in this video right now, just like with called e-mail campaigns or really anything else in life, as long as you're consistently doing it every single day with another volume of it every single day.

Two quality leads. I promise you, you'll end up putting some money from week.

And finally, if LinkedIn was the best thing since sliced bread, paid online traffic is the invention of peanut butter and banana sandwich that is to be used on that sliced bread, peanut butter jelly. Now, this is only going to be for advanced users and we honestly love to use LinkedIn and cold email to master our messaging our product market fit and get our few first clients to get the ball rolling. That way, we're not really losing any money to paid ads and we can make sure we have our systems and processes down for really start scaling things up with online traffic. At the absolute bare minimum, I recommend everybody watching this video should set up what's known as a retargeting campaign to put ads in front of people that have visited your website to people that have gone your Instagram to your Facebook watch YouTube channel, but I've never actually bought from you before. You can live and run these ad campaigns for one to three dollars a day, and they can just be asking that prospect to take the next step, which could be buying your product, booking a time on your calendar, applying to speak with you, etc., etc.

And an additional retargeting campaigns. These cold organic outreach campaigns through email and LinkedIn are actually going to be sending people to your blog or content pieces or testimonials or your application or booking page, which will actually let them be retargeted by the paid ads. So you have this cold organic outreach that's actually even fueling this retargeting campaign. And that's where you can be really making a lot of money without having to spend too much on ads.

Now, once we have gotten retargeting advertising campaigns down, we're going to have to go offer the same audience that we're doing in email and LinkedIn, which is a cold audience, meaning that they've never heard of who we are and they couldn't tell the difference between us and a whole novel.

I'm not going to lie. Out of all the strategies that I've talked about in this video, this is probably going to be one of the most difficult ones to do. And we walk our clients through it step by step inside Scaling With Systems so they can get an insane amount of leads. But there is a whole lot that can go wrong with it.

I would honestly find someone who has created an advertising campaign or build something like this before. You've never run cold traffic because if you can really nail it down, then it's going to be worth the investment because a lot of our clients are ourselves.

We're putting one dollar in to pay traffic on Facebook, Google, YouTube or Instagram. And we're getting three or four dollars back from this machine that we've created. At this point, lead generation becomes this kind of machine or game that you really play where you're just looking at how much money you're spending going out every day and how much money is stacking up in your bank account at the end of every day.

So there you have it. I just gave you the keys to printing money with your business. So once again, in mastering business to business lead generation, it's important that you follow these steps in this exact order. Number one, make sure that you have a few case studies or testimonials and some core piece of content that can show that you're an authority in your industry. Number two, you really want to prove your messaging and offer to free lead generation sources such as cold demand snd LinkedIn before we really start to scale things up.

It's important that you really spend some time in this area of the process and really automate and systemize it so that you have you or somebody else or even automation taking care of 99 percent of its lead generation aspect. So we can focus on the paid ads aspect. Once you have removed yourself from the cold, emailing the linked in prospect and even the sales cycle in general, then we can pivot towards the paid ads. These are incredibly scalable, and although it may be difficult to initially set up, you can kind of set up a machine where you're putting in one dollar and you're getting back three to five dollars. So if you're curious to learn a little bit more information on some of our organic outbound lead generation messaging scripts or where we're finding and hiring virtual assistance from or even that machine I talked about, that includes the paid ads where you put a dollar in and get four dollars back.

I invite you to click the link in the description to access a free training that I put together on the exact steps that I took to scale to companies to multimillions in under 18 months. As usual, have you found any value in this video, please give me a quick favor and give it a thumbs up, click the describe button below and also comment down any questions as you had about the business business, lead generation strategies, some other videos you want to make or just to say hi. I'll see you guys in the comments..

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