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John Wiley & Sons Inc (NYSE:JW.A)
Cost of Goods Sold
$511 Mil (TTM As of Jul. 2014)

John Wiley & Sons Inc's cost of goods sold for the three months ended in Jul. 2014 was $124 Mil. Its cost of goods sold for the trailing twelve months (TTM) ended in Jul. 2014 was $511 Mil.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. John Wiley & Sons Inc's Gross Margin for the three months ended in Jul. 2014 was 71.67%.

Cost of Goods Sold is also directly linked to Inventory Turnover. John Wiley & Sons Inc's Inventory Turnover for the three months ended in Jul. 2014 was 1.74.


Definition

Cost of goods sold (COGS) refers to the Inventory costs of those goods a business has sold during a particular period.

John Wiley & Sons Inc Cost of Goods Sold for the trailing twelve months (TTM) ended in Jul. 2014 was 130.352 (Oct. 2013 ) + 130.563 (Jan. 2014 ) + 126.173 (Apr. 2014 ) + 124.053 (Jul. 2014 ) = $511 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin.

John Wiley & Sons Inc's Gross Margin for the three months ended in Jul. 2014 is calculated as:

Gross Margin=(Revenue - Cost of Goods Sold) / Revenue
=(437.917 - 124.053) / 437.917
=71.67 %

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

A company that has a “moat” can usually maintain or even expand their Gross Margin. A company can increase its Gross Margin in two ways. It can increase the prices of the goods it sells and keeps its Cost of Goods Sold unchanged. Or it can keep the sales price unchanged and squeeze its suppliers to reduce the Cost of Goods Sold. Warren Buffett believes businesses with the power to raise prices have “moats”.

Cost of Goods Sold is also directly linked to another concept called Inventory Turnover:

John Wiley & Sons Inc's Inventory Turnover for the three months ended in Jul. 2014 is calculated as:

Inventory Turnover (Q: Jul. 2014 )
=Cost of Goods Sold (Q: Jul. 2014 )/( (Inventory (Q: Apr. 2014 )+Inventory (Q: Jul. 2014 ))/ 2 )
=124.053/( (75.495+67.088)/ 2 )
=124.053/71.2915
=1.74

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher inventory turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate inventory turnover. An average inventory is a better indication.


Related Terms

Inventory, Inventory Turnover, Gross Margin, Revenue


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

John Wiley & Sons Inc Annual Data

Apr05Apr06Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14
COGS 325342421533516534539543532507

John Wiley & Sons Inc Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
COGS 139127130142134120130131126124
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