Sales Minus Cost of Goods Sold (COGS) is an integral part of any business’s profit margin calculation. It represents the difference between what a business earns from its sales and the cost it incurred to produce those goods or services. The resulting figure forms the basis for understanding a company’s profitability and allows stakeholders to make informed decisions. With a greater understanding of COGS, businesses can better manage their expenses, maximize profits and create a sustainable future.