COSTNEUTRAL

COST Gross Margin Analysis

12.8%

Updated 609h ago·SEC filings & market data

Key Takeaway

Gross margin is the share of revenue left after paying the direct cost of goods sold; 12.8% means Costco keeps $0.128 for each $1 of revenue before other costs.

Sector Performance

5th percentile

COST

12.8%

Sector Median

46.6%

Sector Avg

47.6%

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Deep Analysis

Gross margin is the share of revenue left after paying the direct cost of goods sold; 12.8% means Costco keeps $0.128 for each $1 of revenue before other costs.

That level sits far below the sector median of 44.9%, placing Costco in the 5th percentile among peers. The trend is undefined: the year-over-year change is N/A, and the quarter-over-quarter change is

Frequently Asked Questions

What does the Gross Margin tell investors about COST?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are COST's closest peers by Gross Margin?

The closest peers by Gross Margin include: LVS (46.9%), ORLY (51.4%), MPWR (55.2%), NEM (56.0%), REI (56.0%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.