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QuestionsCategory: Business QuadrantUnderstanding Which Geographies the Company Operates In
Zachary Chia asked 5 months ago

Hello! I am wondering what is a safe percentage of revenue to be split among different countries for the company. 

For example in the video: For nestle, is 79% of domestic sales considered too high?

Or for Facebook the revenue from the different regions is that considered balanced and spread out?

Thank you!!

1 Answers
Victor Chng answered 5 months ago

Hi Zachary,
 
There is no standard fixed percentage when it comes to looking at revenue split between the countries. When looking at geography segment, we want to look for two things:
 

  1. Possible risk exposure if something will to happen to that countries. For instance, a Singapore listed company called food empire have 50% of their revenue in Russia and they reported their financial statements in SGD. Hence, when Russia currency depreciated against the SGD by 50%, they are hurt badly. In summary, you want to make sure the company’s major revenue is contributed from a stable country. 
  2. You are able to find their growth driver from geography segment