Your original post you went on about gross margin. "Don't worry...

Your original post you went on about gross margin.

"Don't worry about the inventory levels, worry about expenses and GM%, expenses are paid in the week/month they fall in so close to the actual cash position. GM% are so small that $17m revenue per QRT is just break even. using a PE of 20, they need to generate $120m revenue pa, to justify their current MC."

Accounting 101, GM = (rev - cogs)/rev. GM does not include operating expenses. Admin, etc whatever are operating expenses.

It is simple, thats why its in 101. Heres a guide, you obviously need one:

https://www.accountingcoach.com/income-statement/explanation/4

If you are arguing about net profit, instead of gross, okay, operating expenses then come into play.