Annual sales refer to the total revenue generated by a business from selling its products or services over a one-year period. This figure is crucial for assessing a company's performance and financial health. It helps businesses understand their market position and make informed decisions about future strategies. Companies often analyze annual sales to identify trends, such as seasonal fluctuations or growth patterns. This information can guide marketing efforts and inventory management. Additionally, stakeholders, including investors and analysts, use annual sales data to evaluate a company's profitability and potential for expansion in the market.