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How Much Margins should a food business have 

There are five profitability ratios that are critical for most firms. Margin ratios are divided into two categories: margin ratios and return ratios. A high gross profit margin indicates that a company is efficient in generating revenue and paying operating costs, taxes, and depreciation. Return ratios show how well a corporation can produce money for its shareholders and owners. The return on assets and the return on equity are two important return ratios for your organization.

The net profit margin shows how much profit your firm produces. It can also help assess profitability for seasonal firms, when profits may be lower but operational costs must still be met. Return on assets measures the efficiency with which assets are used to create profit.