How do you calculate COGS percentage?

How do you calculate COGS percentage?

Calculate the cost of sales ratio by dividing the cost of sales by the total value of sales. Then multiply the result by 100 to get the percentage.

What is COGS as a percentage of sales?

Instead, total inventory count is used to calculate COGS. The average cost of goods sold in the restaurant industry varies, but the cost of goods sold percentage is between 28% and 32% of revenue. This range primarily depends on two factors.

What is a good COGS to sales ratio?

As a general rule, your combined CoGS and labor costs should not exceed 65% of your gross revenue – this would be a major inventory mistake. However, if your business is in an expensive market, you should aim for an even lower percentage.

What is a good COGS percentage retail?

What is a good profit margin for retail? A good online retailer’s profit margin is around 45%, while other industries, such as general retail and automotive, hover between 20% and 25%.