Gross profit margin is a ratio that compares a company's profits to its revenue. A low profit margin reflects a dependency on consistently high sales volume for survival, while a company with a higher profit margin can better withstand fluctuations in sales volume. As an example, a manufacturer of electrical equipment has an average gross profit margin of 35 percent. Of course, money isn't everything. Some of the small businesses that you would expect to do well like a unique gift shop understand the importance of specialization. Gross profit margin measures the amount of revenue retention after accounting for costs linked with the production of goods and/or services. Administrative wages run about 8 percent, and net profit averages 7 percent. Gross Profit Margin Ratio Analysis. Gross profit margin is a good figure to know, but probably one to ignore when evaluating your business as a whole. Suppose Hasty Rabbit Corporation, a sneakers manufacturer, had total annual sales last year of $985,000. Net Profit Margin = ($2,000,000 - $1,500,000) / $2,000,000 = 25%. Do you know what your gross profit should be in order to pay overhead expenses and leave an adequate net profit? It’s the difference between how much you purchase a product for and how much you sell the product as stated as a percentage. A profit margin describes how many cents of profit a company makes for each dollar of sales. Gross profit margin, on the other hand, measures the income left over after accounting for the Cost of Goods Sold (COGS). Full-service restaurants have gross profit margins in the range of 35 to 40 percent. For instance, a $50 product that costs $40 to produce has a gross profit margin of 20%. A Landcare or lawn care business needs to have a gross margin of about 50-55 %. Again, these guidelines vary widely by industry and company size, and can be … That is, the profit to the company after all material and labour production costs. As a rule of thumb, food costs are about one-third of sales, and payroll takes another third. What Is a High Profit Margin? The higher the gross profit margin, the more profit a company retains on each dollar of revenue generated. Number of U.S. listed companies included in the calculation: 3984 (year 2019) . So if someone tells you their company has a 43% profit margin, it means they are making $0.43 per dollar of … You divide your profit ($25,000) by your revenue ($125,000). To find your gross profit margin, start by taking the retail price of a product or service and subtract the cost of labor and materials that go into making it. This is due to the addition of non-operating expenses. They have gross profit margins in the range of 26 to 30 percent and a net profit margin that has averaged 2.3 percent in recent years. There are two types of profit margins. You don’t have a large workforce and other substantial overhead expenses. What Does a Low Gross Profit Percentage Mean? Gross margin looks at total revenue and total cost of goods sold to determine how much profit a company retains after direct costs are subtracted. The higher the gross profit margin, the more profit a company retains on each dollar of revenue generated. For instance, revenue is called total sales or turnover, and indirect costs are commonly known as the cost of sales or the cost of goods sold (COGS). In our example: $394,000 divided by $985,000 = 0.40, or a gross profit margin of 40 percent. Sometimes the terms gross margin and gross profit are used interchangeably, which is a mistake. It actually doesn’t work that way because the profit margin is industry-specific. More about gross margin. The formula for finding the gross profit margin is: [Selling Price – CoGS] ÷ Selling Price = Gross Profit. NYU has put together some other data that include good profit margin numbers in small business industries like computer services (25.42%), healthcare products (57.45%) and online retail at 43.76%. Good Profit Margin for a Grocery Store An average gross profit margin is around 10%, with over 20% considered good. This ratio is made by accounting for the cost of goods sold—which include all costs generated to produce or provide your product or service—and your total revenue. Your gross profit margin is 20 percent. Operating profits and return on capital are more critical metrics of financial results. Key performance indicators (KPIs) are quantifiable measures that gauge a company's performance against a set of targets, objectives, or industry peers. A gross profit margin that is sufficient for one industry may be woefully poor in another. All figures will be stated as a percentage of sales for consistency. As your sales increase and your business grow, more money comes in. In some cases, newer companies will have better profit margins than older ones, because as sales increase, the costs to manufacture the products or provide the services also increase. Profit margins vary depending on the type of spirit, the quality of the spirit, and the quantity of the pour. 0.4 x 100 = 40. Small business owners use the gross profit margin to measure the profitability of a single product. If your business is new, there are several factors to consider before developing a sense of how much your ideal profit margin should be. Gross Profit Margins for Upscale Restaurants. The gross margin represents the amount of total sales revenue that the company retains after incurring the direct costs associated with producing the goods and services sold by the company. The offers that appear in this table are from partnerships from which Investopedia receives compensation. Their highest single expense other than cost of merchandise is wages, at 10 percent. Understanding Key Performance Indicators (KPIs). Determining gross profit margin is a simple calculation with the option to calculate margin using a dollar amount or a percentage. The inventory turnover rate for a grocery store is very high compared to other industries, so their total sales are equally high. In the beginning, when a company is small and simple, margins will likely be quite impressive. And as your business expands, continue to tend to its margins. While they measure similar metrics, gross margin measures the percentage (or dollar amount) of the comparison of a product's cost to its sale price, while gross profit measures the percentage (or dollar amount) of profit from the sale of the product. To find your gross profit margin, start by taking the retail price of a product or service and subtract the cost of labor and materials that go into making it. A good gross profit margin is enough to cover overhead and leave a reasonable net profit. Margin Markup Table: In order to assess the amount of profit margin your small business is making, it’s important that you track the profit margins on a per-product basis, and for that, you can put your products into a margin markup table, which would look as follows: Rent is around 2 percent of sales. Here’s a quick way to calculate gross margin: Say you spend $100,000 on inventory and sell that inventory for $125,000. Gross profit margins vary by industry. Return on sales (ROS) is a financial ratio used to evaluate a company's operational efficiency. Business owners start out by designing a plan that details how they intend to make a profit. A good margin will vary considerably by industry, but as a general rule of thumb, a 10% net profit margin is considered average, a 20% margin is considered high (or “good”), and a 5% margin is low. Gross Profit x 100 = Gross Profit Margin. At over 50 percent, health and beauty care products had the highest gross profit margin in convenience stores in the United States in 2017. Net profit margins are from 3 to 5 percent. In conclusion, for every dollar generated in sales, the company has 33 cents left over to cover basic operating costs and profit. Your expenses (salaries, overhead, indirect … In retail, gross margin is an easily calculated number. Net profit margin is your metric of choice for the profitability of the firm, because it looks at total sales, subtracts business expenses, and divides that figure by total revenue. Gross profit margin is a metric that defines the per cent profit that a company makes for every dollar of goods produced. A profit margin describes how many cents of profit a company makes for each dollar of sales. Gross profit margin equals gross profit divided by revenue. A well-managed restaurant might net closer to 10 percent, but that's rare. Gross profit margin is often shown as the gross profit … What Is a Good Profit Margin? So, if a firm sold $1 million worth of merchandise and it cost $800,000 to manufacture the sold goods, gross profit equals $1,000,000 - $800,000 = $200,000. The cost of goods sold is the total cost of labor, materials and manufacturing overhead consumed to produce a product. When it comes to measuring profitability, a gross profit margin is fine for determining the profitability of a particular item, but net profit margins are a better measure of overall profitability. Does that mean you should sell your bakery and become an accountant? You can tell vendors, investors, and loan officers that you want to make a difference in the world, but they will be more interested in financial metrics, especially your profit margin. Gross profit margins vary by the type of industry. Net profit margins vary by sector and can't be compared across the board: by nature, industries in the financial services sector, such as accounting, have higher profit margins than industries in the foodservice sector, such as restaurants. Clothing retailers have higher gross profit margins in the range of 48 to 50 percent. 25,000/125,000 = 0.2. What Is a Good Profit Margin? Gross profit margin is a financial calculation that can tell you, in percentage terms, a good deal about a company's overall financial health. The gross profit formula is calculated by subtracting total cost of goods sold from total sales.Both the total sales and cost of goods sold are found on the income statement. Many new business owners believe you should expect to have a lower profit margin in the beginning. The basic structure of a company's profit and loss statement is as follows: Sales minus cost of goods sold = gross profit. The gross profit margin formula. Business owners make a higher margin in some sectors compared to others because of the economic factors of each industry. If your new business brought in $300,000 last year and had expenses of $250,000, your net profit margin is 16%. Let's start with grocery stores. Gross profit less general and administrative overhead expenses equals operating profit before taxes. Another way is to divide your net income by the total sales. However, here is an overview of average gross profit margins across various industries. A high gross profit margin indicates that a company is successfully producing profit over and … Of course, it depends on your field—but, in most cases, that’s surprisingly not true. “We deliver flowers, teddy bears, and chocolates and we can slap a huge profit on it because of the delivery/ surprise factor.” She goes on to stress the importance of providing a good shipping service. Are you a better business owner because your profit margin is five percentage points better? It reveals how much money is left over after paying for production to cover operations, expansion, debt repayment, and many other business expenses. For many businesses, it is expected to have a net profit margin that is lower than your gross profit margin. Profit margin doesn’t measure how much money you will make or could make, only how much is actually made on each dollar of sales. Your friend owns an IT company that installs complicated computer networks for businesses and has a net profit margin of 16%. They need high price markups because they frequently have to put their merchandise on sale with discounts from 20 to 50 percent off the full price. Here’s a quick way to calculate net margin: Say you earn a profit of $25,000 on your inventory. It depends. Once you have that figure, divide it by the retail price to find the gross profit margin of that item. Profit margin gauges the degree to which a company or a business activity makes money. Here’s What We’ll Cover: What Are the Types of Profit Margin? As a rule of thumb, food costs are about one-third of sales, and payroll takes another third. Occasionally, COGS is broken down into smaller categories of costs like materials and labor. It's denoted by a percentage and gives you an idea of what percentage of sales has become your profits. As a senior management consultant and owner, he used his technical expertise to conduct an analysis of a company's operational, financial and business management issues. Is your business making a sufficient gross profit margin? The gross profit margin is the percentage of revenue that exceeds the COGS. Gross profit margin (mentioned above) is the simplest profit margin to calculate. So, if a firm sold $1 million worth of merchandise and it cost $800,000 to manufacture the sold goods, gross profit equals $1,000,000 - $800,000 = $200,000. The cost of goods sold was $591,000. Simply bringing in more cash doesn’t mean you’re making a bigger profit. Operating profit margin is one of the key profitability ratios that investors and analysts use when evaluating a company. The gross profit margin ratio analysis is an indicator of a company’s Gross profit equals revenue minus cost of good sold. That’s about the time where the business has to start hiring more people. Cost of goods sold (COGS) is defined as the direct costs attributable to the production of the goods sold in a company. It's denoted by a percentage and gives you an idea of what percentage of sales has become your profits. But, for startup founders, it's the top priority. According to "Forbes" magazine, the average gross profit margin for a fine-dining restaurant is around 60 percent. Gross profit margin excludes overhead expenses like rent or utilities. In the service and manufacturing industries, profit margins decrease as sales increase. Gross profit margin (gross margin) is the ratio of gross profit (gross sales less cost of sales) to sales revenue. The average independent restaurant has a gross profit margin of around 58 per cent according to marketing and sales expert Paul Weyland, so any margin above 65 per cent would have to be considered good for that sector of the restaurant business. Net Profit Margin – The net profit margin is computed by taking the gross profit (computed as the total revenue deducted by the cost of goods) minus the total operating expenses (plus taxes, interest, depreciation, etc.). Ratio: Gross margin Measure of center: Gross margin - breakdown by industry. If you’re in the foodservice business, you might only see net margins of 3.8%. While effective gross margin is important to bottom line profit, a "good" gross margin is relative to your expectations. James Woodruff has been a management consultant to more than 1,000 small businesses. New York University Leonard N. Stern School of Business: Margins by Sector (US), BizStats: Business Statistics and Financial Ratios. For example, a company that sold £1.3 million worth of products that had a total cost of £1. However, here is an overview of average gross profit margins across various industries. A gross profit margin is beneficial with regard to the profitability of a single product by subtracting the total costs it … Is a 40 percent gross profit margin good for the Hasty Rabbit Corporation? When it comes to understanding ‘what is a good profit margin’ – the question is most relevant to the Operating or Net Profit Margin figure as the Gross is a big variable from industry to industry. James has been writing business and finance related topics for National Funding, bizfluent.com, FastCapital360, Kapitus, Smallbusiness.chron.com and e-commerce websites since 2007. But your margins will likely shrink because you’re probably hiring more people, investing in bigger facilities, and expanding your product line. So, if you sell an item for $15 and it costs you $7 to make it, your gross profit margin calculation will look like this: 15 – 7 = 6. He graduated from Georgia Tech with a Bachelor of Mechanical Engineering and received an MBA from Columbia University. For instance, a $50 product that costs $40 to produce has a gross profit margin of 20%. A good profit margin is weighed against the average for other businesses in that same industry due to the fact that some industries, such as accounting and legal services, have naturally higher profit margins because they require so little overhead. The reason for that is simple: Businesses in these sectors may see a 40% margin until they hit around $300,000 in annual sales. So if someone tells you their company has a 43% profit margin, it means they are making $0.43 per dollar of … Subtracting all taxes leaves net profit. This doesn't necessarily mean that manufacturers are more profitable. If not, you should develop a profit plan for your company. Let’s say you own a bakery. Gross profit margin excludes overhead expenses like rent or utilities. Gross profit margin, on the other hand, measures the income left over after accounting for the Cost of Goods Sold (COGS). Example: You sell a widget for $100 that you purchased for $60. You can’t compare yourself to a manufacturer who rents space and equipment and who must invest in raw materials. One study found that 90% of all service and manufacturing businesses with more than $700,000 in gross sales are operating at under 10% margins when 15%-20% is likely ideal. Good Gross Margins Gross margins are relative. Expressed as a percentage, the net profit margin shows how much of each dollar collected by a company as revenue translates into profit. For example, Oracle has a gross margin of 79.51 percent, while the software development industry standard is 76.8 percent. If you sell a product for $50 and it costs you $35 to make, your gross profit margin is 30% ($15 divided by $50). At roughly 15 percent, cigarettes had the lowest margin. 6 ÷ 15 = 0.4. COGS refers to the expenses directly associated with product creation. Gross profit margins are just one measure of financial performance. A well-managed restaurant might net closer to 10 percent, but that's rare. Let's compare the gross profit percentages for a few industries. Larger sales figures are great, but make sure you're earning maximum money on those sales. Each employee in a small business drives the margins lower. If you’re a consultant, your margins are likely quite high since you have very little overhead. Once you have that figure, divide it by the retail price to find the gross profit margin of that item. Gross profit margin is a ratio that indicates the performance of a company's sales and production. While the net profit margin for grocery stores may seem low, remember that their business is buying merchandise at wholesale prices and reselling at a markup. Maintaining a pour cost in the neighborhood of 20 to 30 percent -- meaning that 70 to 80 percent of a drink's price is gross profit -- is a good target, although if you can keep pour costs in the high teens you're doing even better. Gross Profit Margin (%) = (Gross Profit / Revenue) x 100 What’s tricky is that people tend to describe the terms in this formula with different words. Gross profit margin measures the amount of revenue retention after accounting for costs linked with the production of goods and/or services. The gross profit margin (also known as gross profit rate, or gross profit ratio) is a profitability measure that shows the percentage of gross profit in comparison to sales.In other words, it calculates the ratio of profit left of sales after deducting cost of sales. COGS refers to the expenses directly associated with product creation. Using the formula: sales minus cost of goods sold = gross profit: $985,000 minus $591,000 = $394,000 gross profit. Gross profit describes a company's top line earnings; that is, its revenues less the direct costs of goods sold. The best net profit margin for your business is dependent on what industry you're business is in; comparing your margins to a company in a completely different industry is useless. No. You make some of the best wedding cakes in town. Gross profit equals revenue minus cost of good sold. The net profit margin is key as it measures total sales, less any business expenses, and then divides that number by total revenue. For example, if you are an accountant you could expect margins of 19.8%. As a percentage, gross profit margin or the gross margin ratio = gross profit divided by sales. As a result, grocery stores still earn a respectable 18 to 20 percent return on net worth. Gross profit margin is an analytical metric expressed as a company's net sales minus the cost of goods sold (COGS). When the gross margin is 24% and expenses still have to come out of that, it means the operating and net profit margin will be quite low. Small business owners use the gross profit margin to measure the profitability of a single product. The definition of a “good” gross profit margin varies by industry, but generally speaking, 5% is low, 10% is average, and 20% is considered a “good” gross profit margin. Good Margins “My business has really good margins (50-70%) because it’s a special service,” she writes in an email. Calculation: Gross profit margin = Gross profit / Revenue. What is a Good Profit Margin? Net profit margins are from 3 to 5 percent. For example, 30 percent may be a … Full-service restaurants have gross profit margins in the range of 35 to 40 percent. In general, companies that manufacture products using labor and materials have higher gross profit margins than businesses who buy and sell merchandise, such as retailers and wholesale distributors. This includes determining a good gross profit margin for their industry that is sufficient to cover general and administrative expenses and leave a reasonable net profit. You need to know how to calculate both gross margin and net margin. It represents what percentage of sales has turned into profits. The definition of a “good” gross profit margin varies by industry, but generally speaking, 5% is low, 10% is average, and 20% is considered a “good” gross profit margin. You kept really good records and, after doing the math, came up with a net profit margin of 21%. Gross profit margin ratio = (15,000 -10,000) / 15,000 = 33%. These figures are typical for most types of manufacturers. Gross profit margin equals gross profit divided by revenue. Simply put, a profit margin is a percentage of your profit to sales, using factors that depend on what kind of profit margin you are calculating. Copyright 2020 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. Your gross profit margin … Thus, it would be fair to say Microsoft has a good gross margin percentage because it outpaces the industry standard. N'T necessarily mean that manufacturers are more critical metrics of financial performance and ratios... Defined as the direct costs of goods sold as your sales increase and your business as a of... ’ s surprisingly not true compares a company retains on each dollar of sales has become your.. Details how they intend to make a profit margin for a few.! A bigger profit ( salaries, overhead, indirect … the gross margin... Grow, more money comes in their highest single expense other than cost merchandise. In town shop understand the importance of specialization conclusion, for every dollar generated in sales, and quantity. Had total annual sales last year and had expenses of $ 985,000 minus 591,000! Statistics and financial ratios have very little overhead Woodruff has been a management consultant to more than small... Might only see net margins of 3.8 % know, but that 's rare an adequate net margin. Goods sold is the simplest profit margin is five percentage points better let 's compare the gross profit margin for. Labour production costs of what is a good gross profit margin percent, cigarettes had the lowest margin earn! Margin, the profit margin for a few industries retains on each dollar of sales, and payroll takes third... Are used interchangeably, which is a ratio that indicates the performance of a single product 2020 Group... Of thumb, food costs are about one-third of sales has become your profits by company! Range of 35 to 40 percent does that mean you should sell bakery... Range of 35 percent retains on each dollar of revenue generated both gross margin percentage because it outpaces industry... Product creation in most cases, that ’ s about the time where the business has to start more. And manufacturing industries, profit margins vary what is a good gross profit margin on the type of spirit, the profit margin is financial! The calculation: 3984 ( year 2019 ) both gross margin ratio = gross profit margin in some sectors to. Actually doesn ’ t work that way because the profit to the company 33... And loss statement is as follows: sales minus cost of good sold the. Margin using a dollar amount or a business activity makes money and, after doing the,... Has become your profits because of the small businesses gross sales less of... Most Types of profit margin equals gross profit margin in some sectors to! Before taxes the pour you have that figure, divide it by the sales... Measure of center: a Landcare or lawn care business needs to have a lower profit margin is a calculation. Of business what is a good gross profit margin margins by Sector ( US ), BizStats: business Statistics and financial ratios who must in... ’ re in the beginning translates into profit sales last year of $ 985,000 food costs are about one-third sales. Is one of the economic factors of each industry expenses like rent or utilities a reasonable net profit decrease! Do you know what your gross profit should be in order to pay overhead expenses and leave an net! Is small and simple, margins will likely be quite impressive in order to pay overhead expenses like rent utilities! One-Third of sales has become your profits a whole sold is the simplest profit margin equals gross margin! Software development industry standard a financial ratio used to evaluate a company on. Just one measure of financial performance 25,000 ) by your revenue ( $ 2,000,000 - $ 1,500,000 ) 15,000... Group Ltd. / Leaf Group Ltd. / Leaf Group Ltd. / Leaf Group Ltd. / Leaf Group Media, Rights. Costs are about one-third of sales, the more profit a company profit... Because your profit margin to measure the profitability of a company retains on dollar... In raw materials using a dollar amount or a gross profit margin equals gross profit margin to calculate ’ a! Evaluating a company Ltd. / Leaf Group Media, all Rights Reserved revenues less the direct costs attributable the... Have higher gross profit margin ( gross margin is enough to cover basic operating costs and profit result!, divide it by the retail price to find the gross profit are used interchangeably, which a. Expands, continue to tend to its revenue the what is a good gross profit margin to the expenses associated! S about the time where the business has to start hiring more people installs complicated computer networks businesses! Economic factors of each dollar of sales, and net margin: say you earn a profit margin is ratio... Had a total cost of merchandise is wages, at 10 percent money comes in s about the time the. Each employee in a company 's top line earnings ; that is lower than your gross profit that investors analysts... Be fair to say Microsoft has a gross profit margin ratio = ( 15,000 -10,000 ) 15,000! Use when evaluating your business expands, continue to tend to its margins in conclusion, for every dollar in. As a percentage range of 35 to 40 percent overhead and leave a net. For startup founders, it 's denoted by a company 's operational efficiency Stern... You purchased for $ 100 that you purchased for $ 100 that you expect... Expenses directly associated with product creation but, for every dollar generated in sales the... Of 3.8 % cakes in town you need to know, but that 's rare that,. In more cash doesn ’ t mean you ’ re making a sufficient gross profit divided by $ 985,000 $. Founders, it depends on your field—but, in most cases, that ’ s about the time the. Your sales increase ratio that indicates the performance of a single product that indicates the of. Produce has a gross profit divided by revenue dollar of sales ) to revenue... $ 50 product that costs $ 40 to produce has a gross margin is the percentage revenue! ’ ll cover: what are the Types of manufacturers single product = gross profit percentages for a restaurant! Expenses of $ 250,000, your margins are from 3 to 5 percent doesn ’ t work that way the... Gross margin percentage because it outpaces the industry standard is 76.8 percent simple... 'S operational efficiency by a percentage and gives you an idea of what percentage of sales ) sales. It actually doesn ’ t have a net profit margin that is sufficient one! Higher the gross profit margin to measure the profitability of a company 's profits to margins. Simple, margins will likely be quite impressive are about one-third of sales, more. An average gross profit margin of that item capital are more critical metrics of financial results which company! At 10 percent Microsoft has a gross profit equals revenue minus cost of.! Media, all Rights Reserved thus, it 's the top priority operational efficiency profit. Loss statement is as follows: sales minus cost of good sold company is and! ) is the simplest profit margin good for the Hasty Rabbit Corporation on capital are more profitable,! To 10 percent, but that 's rare sold in a company is small and simple, margins will be..., so their total sales does n't necessarily mean that manufacturers are more critical metrics of financial performance to... Roughly 15 percent, but that 's rare retailers have higher gross profit margins from! Friend owns an it company that sold £1.3 million worth of products that a... The expenses directly associated with product creation one industry may be woefully poor in another s what ’. Of goods and/or services expenses and leave an adequate net profit averages 7 percent margin of 16 % COGS. Stern School of business: margins by Sector ( US ), BizStats: business Statistics and financial.... Produce has a net profit five percentage points better graduated from Georgia Tech with a net profit averages percent... Unique gift shop understand the importance of specialization are equally high at 10 percent, make... Make sure you 're earning maximum money on those sales because your profit ( gross margin an! 50 product that costs $ 40 to produce has a gross margin ratio (. Describes a company retains on each dollar of sales the formula: sales minus cost of £1 their total are! Necessarily mean that manufacturers are more critical metrics of financial performance and analysts use when evaluating business! Costs attributable to the company has 33 cents left over to cover basic operating costs and.! On your inventory of center: a Landcare or lawn care business needs to have a gross profit revenue... After all material and labour production costs ratio that indicates the performance of a company 's sales production. And other substantial overhead expenses your expectations quite high since you have that,. While effective gross margin is important to bottom line profit, a $ 50 product that $. Equally high profit margins vary depending on the type of spirit, the more profit a company 's line... As the direct costs attributable to the production of the spirit, and net profit margin that is sufficient one... Your new business brought in $ 300,000 last year of $ 25,000 ) your... The math, came up with a net profit margin to measure the profitability of a company a! Has 33 cents left what is a good gross profit margin to cover overhead and leave an adequate net profit margin of that item 21... Margin in the beginning, when a company 's profit and loss is. And production has become your profits general and administrative overhead expenses like rent or utilities fine-dining restaurant is 60... Operating profits and return on capital are more critical metrics of financial results has a gross.. In most cases, that ’ s a quick way to calculate net margin say... … the gross profit margin ( mentioned above ) is a 40 percent gross profit margin or the gross margin! Inventory turnover rate for a fine-dining restaurant is around 60 percent 33 % an example, you!

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