Gross Margin
Sales minus COGS, expressed in dollars or as a percentage of sales.
Last updated September 5, 2026
Gross margin shows how much is left after the direct cost of what was sold, before rent, labor, and other operating expenses. Buyers compare the margin to industry norms and to the seller’s recast. Price increases, mix shifts, or unrecorded comps can move the percentage without a real improvement. Occupancy and labor then determine whether the margin becomes cash flow.