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GuruFocus has detected 5 Warning Signs with Analog Devices Inc \$ADI.
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Analog Devices Inc (NAS:ADI)
COGS-to-Revenue
0.34 (As of Jan. 2017)

Analog Devices Inc's cost of goods sold for the three months ended in Jan. 2017 was \$336 Mil. Its revenue for the three months ended in Jan. 2017 was \$984 Mil.

Analog Devices Inc's COGS to Revenue for the three months ended in Jan. 2017 was 0.34.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. Analog Devices Inc's Gross Margin for the three months ended in Jan. 2017 was 65.87%.

Definition

Analog Devices Inc's COGS to Revenue for the fiscal year that ended in Oct. 2016 is calculated as

 COGS to Revenue = Cost of Goods Sold / Revenue = 1194.236 / 3421.409 = 0.35

Analog Devices Inc's COGS to Revenue for the quarter that ended in Jan. 2017 is calculated as

 COGS to Revenue = Cost of Goods Sold / Revenue = 335.945 / 984.449 = 0.34

* 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.

Analog Devices Inc's Gross Margin for the three months ended in Jan. 2017 is calculated as:

 Gross Margin = 1 - COGS to Revenue = 1 - Cost of Goods Sold / Revenue = 1 - 335.945 / 984.449 = 65.87 %

* 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.

Analog Devices Inc Annual Data

 Oct07 Oct08 Oct09 Oct10 Oct11 Oct12 Oct13 Oct14 Oct15 Oct16 cogs2rev 0.39 0.39 0.44 0.35 0.34 0.36 0.36 0.36 0.34 0.35

Analog Devices Inc Quarterly Data

 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 cogs2rev 0.40 0.35 0.34 0.34 0.34 0.38 0.34 0.34 0.34 0.34
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