answersLogoWhite

0

the business might have offered customers too much trade discounts and might have not effecyively managed their cost of sales.

User Avatar

Wiki User

12y ago

What else can I help you with?

Continue Learning about Other Business

How do you price a business for sale?

i think it is 3 x gross sales


What is the performance ratios for office supply retailers?

Performance ratios for office supply retailers typically include metrics such as inventory turnover, gross margin, and return on assets (ROA). Inventory turnover measures how efficiently a retailer manages its stock, indicating demand and sales efficiency. Gross margin assesses profitability by comparing sales revenue to the cost of goods sold. Return on assets evaluates how effectively a company utilizes its assets to generate profit, providing insights into operational efficiency. These ratios help assess the overall financial health and operational effectiveness of office supply retailers.


What is a franchise owner?

A Franchise Owner, is a Franchisee - a person who purchases the rights of the business from the Franchisor, or the Founder of the Business in other words, and pays ongoing royalty's based on a percentage of Gross Sales, such as owning a McDonald's Franchise for instance.


What is the cost of property and casualty business insurance in 2013 as a percentage of gross sales?

Every risk is different, but in general, less than 1 percent.


What is Gross income of hookah bars?

Gross income for hookah bars refers to the total revenue generated from all sources before any expenses are deducted. This includes income from hookah sales, food and beverages, cover charges, and any other services offered. The gross income can vary significantly based on location, clientele, operating hours, and overall popularity. It's an important metric for evaluating the financial performance of the business but doesn't account for operational costs.

Related Questions

Why is it important to achieve a high gross margin?

The higher the gross margin the more profit you can make. Gross margin is the difference between cost and original sell price of a product. it is you the original conceived profit. Obviously the higher the gross margin the more profit possible. (That is as long as a customer will pay that price!!)


Why a company may not achieve its target gross margin?

Mark up is lower than desired or large impairment losses of inventory. Stock theft or stock damage could be a reason.


How are contribution margin and gross margin used for decision-making and measurement?

investment, financial markets, business accounting


What is gm percentage?

Gross Margin % which is calculated as Gross Margin / Sales


What is LTM gross margin?

Last Twelve Months Gross Margin


What is the difference between gross margin and profit margin?

Gross Margin = (Gross Profit/Sales)*100 Gross Profit = Sales - Cost of Sales Or in words, the Gross Margin is an expression of the Gross Profit as a percentage of Sales, where the Gross Profit is Sales minus the Cost of Sales.


Calculate gross margin percentage?

Gross Profit/Net Sales = Gross Profit Margin.


What are the effects of a decrease in net profit margin?

A decrease in net profit margin means that the business is spending a lot of money on its expenses. The business may still have a high gross income.


How can one determine the gross margin ratio for a business?

The gross margin ratio for a business can be determined by subtracting the cost of goods sold from the total revenue, and then dividing that result by the total revenue. This ratio helps to measure how efficiently a company is producing and selling its products.


What is the difference of gross profit and gross margin?

Gross profit is the amount of profit in dollars...gross margin is the % profit to expenses


How do you calculate gross margin ratio?

gross margin ratio is calculated as >GROSS PROFIT/NET SALES


What is the difference between net and gross margin?

Gross margin is Gross income as a percentage of revenue. Net Margin is net income as a percentage of revenue.