What is a good EBITDA margin for a small business?

Most healthy small businesses run an EBITDA margin between 10% and 20%. Service businesses and SaaS often run higher (20–35%+), while restaurants and retail typically run 10–15%. CFO Grade compares your EBITDA margin to industry-specific benchmarks across 16 sectors.

What DSCR do lenders look for?

Most SBA and commercial lenders require a Debt Service Coverage Ratio (DSCR) of at least 1.25x. Construction surety bonds often require 1.5x or higher. A DSCR below 1.0x means your EBITDA does not cover your annual debt payments.

How does CFO Grade calculate the letter grade?

CFO Grade scores 24+ financial ratios across profitability, liquidity, leverage, and efficiency — weighted by industry. The composite score maps to a letter grade from A+ to F. The full methodology and benchmark sources are described in the report and the disclaimer page.

Yes. The full analysis, 24+ ratios, letter grade, and industry benchmarks are completely free with no signup. Optional paid features include a $9 PDF export and a $19 Pro Pass with AI-generated CFO memo and 30 days of unlimited PDFs.

Do I need to create an account?

No account is required. Your numbers stay on your device unless you explicitly opt in to anonymized peer benchmarking. Pro entitlements are bound to your device with a restore link you can email yourself.

Is CFO Grade financial advice?

No. CFO Grade provides educational insights for business owners and analysts. It is not financial, tax, legal, or investment advice. Always verify the output with a qualified professional before making business decisions.

Industry-Specific

Same-Store Sales Growth

Short answer

Same-Store Sales growth (also called comparable sales or comps) measures revenue change at locations open for at least a year. Investors and analysts weight comps more heavily than total revenue growth because total revenue can grow purely from new-store openings while underlying stores shrink.

Formula

Same-Store Sales % = (Current Period Sales − Prior Period Sales) / Prior Period Sales

Only count locations open for both periods. Compare current period revenue at those locations to the same period last year. The percent change is your comp.

Why it matters

Same-store sales is the cleanest read on whether a retail or restaurant brand is healthy. Total revenue can grow purely from new openings while underlying stores shrink — a classic late-stage warning sign. Public retailers report comps quarterly because investors weight them more heavily than total revenue growth.

Benchmarks

Best-in-class growth> 8%

Healthy3–8%

Inflation-tracking0–3%

Erosion< 0%

Common questions about Same-Store Sales Growth

What is Same-Store Sales Growth?+

Same-Store Sales growth (also called comparable sales or comps) measures revenue change at locations open for at least a year — isolating organic growth from new-store openings.

How is Same-Store Sales Growth calculated?+

Only count locations open for both periods. Compare current period revenue at those locations to the same period last year. The percent change is your comp.

What is a good Same-Store Sales Growth?+

A healthy same-store sales growth is typically around > 8% — best-in-class growth. Specific targets vary by industry and stage; check our benchmarks above for your sector.

Why does Same-Store Sales Growth matter?+

See your business's same-store sales growth.

Paste your numbers and CFO Grade computes this — plus 23 other ratios — in seconds, with your industry's benchmark already loaded.

Related concepts

Prime Cost (Restaurants)Food Cost Percentage (Restaurants)Labor Cost Percentage (Restaurants & Services)

Where this matters most

See Same-Store Sales Growth in the context of restaurants & food service.

Industry-specific benchmarks, common pitfalls, and what lenders look for in this sector.

Restaurants & food service hub