Ark Restaurants(Arkr) Financials: Gross Profit Margin Compared To Industry Average, Plus Other Key Ratios

Company Report for ARKR

Report - gross profit margin

This chart shows the historical trend of gross profit margin for ARKR compared to its industry average over the recent years.

Ratio Definition and Interpretation

Name: Gross Profit Margin

Definition: Gross profit margin shows how much profit the company keeps from each dollar of sales after covering the direct cost of making its products or delivering services. High margins suggest strong pricing power or efficient production. Shrinking margins might mean rising costs or tougher competition eating into profits.

Interpretation:
• In '2021', ARKR's gross profit margin was 38.2%, showing profitability after production and operational costs. Industry average for Restaurants in '2021' stood at 28.9%.
• In '2022', ARKR's gross profit margin was 38.7%, showing profitability after production and operational costs. The increase since '2021' reflects strengthening financial performance. Industry average for Restaurants in '2022' stood at 28.9%. Industry average increased by 0.1% compared to previous year.
• In '2023', ARKR's gross profit margin was 37.3%, showing profitability after production and operational costs. The decline from '2022' may indicate some operational or financial challenges. Industry average for Restaurants in '2023' stood at 29.1%. Industry average increased by 0.1% compared to previous year.
• In '2024', ARKR's gross profit margin was 37.1%, showing profitability after production and operational costs. The decline from '2023' may indicate some operational or financial challenges. Industry average for Restaurants in '2024' stood at 27.9%. Industry average declined by 1.2% from previous year.
Overall, ARKR's gross profit margin has remained generally stable over the past 4 years.

Formula: Gross Profit Margin = (Revenue - COGS) / Revenue

Good Range: Often 20%-60% depending on industry.