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TIBCO Software Inc (NAS:TIBX)
Cost of Goods Sold
\$320 Mil (TTM As of Aug. 2014)

TIBCO Software Inc's cost of goods sold for the three months ended in Aug. 2014 was \$81 Mil. Its cost of goods sold for the trailing twelve months (TTM) ended in Aug. 2014 was \$320 Mil.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. TIBCO Software Inc's Gross Margin for the three months ended in Aug. 2014 was 68.34%.

Cost of Goods Sold is also directly linked to Inventory Turnover.

Definition

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

TIBCO Software Inc Cost of Goods Sold for the trailing twelve months (TTM) ended in Aug. 2014 was 81.864 (Nov. 2013 ) + 77.532 (Feb. 2014 ) + 79.457 (May. 2014 ) + 80.934 (Aug. 2014 ) = \$320 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.

TIBCO Software Inc's Gross Margin for the three months ended in Aug. 2014 is calculated as:

 Gross Margin = (Revenue - Cost of Goods Sold) / Revenue = (255.602 - 80.934) / 255.602 = 68.34 %

* 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:

TIBCO Software Inc's Inventory Turnover for the three months ended in Aug. 2014 is calculated as:

 Inventory Turnover = Cost of Goods Sold / Average Inventory = 80.934 / 0 = N/A

* 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

Historical Data

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

TIBCO Software Inc Annual Data

 Nov04 Nov05 Nov06 Nov07 Nov08 Nov09 Nov10 Nov11 Nov12 Nov13 COGS 93 124 134 159 178 159 198 247 283 307

TIBCO Software Inc Quarterly Data

 May12 Aug12 Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 COGS 69 72 76 74 74 78 82 78 79 81
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