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“Average Number of Transactions” Calculation

23 Apr, 2020 by David Seamans

The “Average Number of Transactions” is determined by “Number of Transactions” / “Active Clients”.

We use the same data from previous examples ( "see" ) to determine Average Number of Transactions” for the same periods.

Week 1

Transaction # Date Client Amount
1001 13/10/2018 Smith $95.00
1002 14/10/2018 Brown $1,100.00
1003 15/10/2018 Wyatt $155.00

In this case, there are 3 transactions and 3 different clients. Average Number of Transactions = 3/3 = 1

Week 2

Transaction # Date Client Amount
1004 20/10/2018 Smith $100.00
1005 21/10/2018 Jones $200.00
1006 22/10/2018 Smith $55.00
C/N 345 22/10/2018 Smith -$80.00
1007 22/10/2018 Brown $150.00
1008 24/10/2018 Green $110.00
C/N 346 24/10/2018 Green -$10.00

This week there are 7 transactions and 4 different clients. Average Number of Transactions = 7/4 = 1.75

Week 3

Transaction # Date Client Amount
1009 27/10/2018 Brown $65.00
1010 28/10/2018 Brown $1,100.00
1011 29/10/2018 Wyatt $155.00

This week there are 3 transactions and 2 different clients. Average Number of Transactions = 3/2 = 1.50

Week 4

Transaction # Date Client Amount
1012 1/11/2018 Brown $100.00
1013 1/11/2018 Wyatt $200.00
1014 2/11/2018 Smith $55.00
C/N 347 2/11/2018 Green -$80.00
1015 3/11/2018 Brown $150.00
1016 3/11/2018 Green $110.00
C/N 348 4/11/2018 Green -$10.00
1017 4/11/2018 Green $215.00
1018 5/11/2018 Green $250.00
1019 5/11/2018 Wyatt $50.00
1020 5/11/2018 Black $500.00

Finally, this week there are 11 transactions and 5 different clients. Average Number of Transactions = 11/5 = 2.20

Average number of sales transactions, are exactly that, an average. The differences in averages might not seem like much but when graphed:

Week 1 Week 2 Week 3 Week 4
Movement 1 0.75 -0.25 0.7
Base 1 1 1.75 1.5
% 100.00% 75.00% -14.29% 46.67%

Average # of Transactions

The trend is a very definite and downward slope.

David Seamans

Co-Founder at Elements, Retired CPA and Company Coach with 35 years of experience building better businesses.