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GuruFocus has detected 3 Warning Signs with Accenture PLC \$ACN.
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Accenture PLC (NYSE:ACN)
COGS-to-Revenue
0.71 (As of Feb. 2017)

Accenture PLC's cost of goods sold for the three months ended in Feb. 2017 was \$6,258 Mil. Its revenue for the three months ended in Feb. 2017 was \$8,762 Mil.

Accenture PLC's COGS to Revenue for the three months ended in Feb. 2017 was 0.71.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. Accenture PLC's Gross Margin for the three months ended in Feb. 2017 was 28.58%.

Definition

Accenture PLC's COGS to Revenue for the fiscal year that ended in Aug. 2016 is calculated as

 COGS to Revenue = Cost of Goods Sold / Revenue = 24520.234 / 34797.661 = 0.70

Accenture PLC's COGS to Revenue for the quarter that ended in Feb. 2017 is calculated as

 COGS to Revenue = Cost of Goods Sold / Revenue = 6258.026 / 8762.182 = 0.71

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Explanation

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

Accenture PLC's Gross Margin for the three months ended in Feb. 2017 is calculated as:

 Gross Margin = 1 - COGS to Revenue = 1 - Cost of Goods Sold / Revenue = 1 - 6258.026 / 8762.182 = 28.58 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Accenture PLC Annual Data

 Aug07 Aug08 Aug09 Aug10 Aug11 Aug12 Aug13 Aug14 Aug15 Aug16 cogs2rev 0.72 0.72 0.70 0.69 0.69 0.70 0.69 0.70 0.70 0.70

Accenture PLC Quarterly Data

 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 cogs2rev 0.70 0.72 0.69 0.70 0.70 0.72 0.70 0.70 0.70 0.71
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