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Aruba Networks Inc (NAS:ARUN)
COGS to Revenue
0.28 (As of Jan. 2015)

Aruba Networks Inc's cost of goods sold for the three months ended in Jan. 2015 was \$60.4 Mil. Its revenue for the three months ended in Jan. 2015 was \$212.9 Mil.

Aruba Networks Inc's COGS to Revenue for the three months ended in Jan. 2015 was 0.28.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. Aruba Networks Inc's Gross Margin for the three months ended in Jan. 2015 was 71.65%.

Definition

Aruba Networks Inc's COGS to Revenue for the fiscal year that ended in Jul. 2014 is calculated as

 COGS to Revenue = Cost of Goods Sold / Revenue = 224.781 / 728.933 = 0.31

Aruba Networks Inc's COGS to Revenue for the quarter that ended in Jan. 2015 is calculated as

 COGS to Revenue = Cost of Goods Sold / Revenue = 60.356 / 212.931 = 0.28

* 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.

Aruba Networks Inc's Gross Margin for the three months ended in Jan. 2015 is calculated as:

 Gross Margin = 1 - COGS to Revenue = 1 - Cost of Goods Sold / Revenue = 1 - 60.356 / 212.931 = 71.65 %

* 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.

Related Terms

Historical Data

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

Aruba Networks Inc Annual Data

 Jul05 Jul06 Jul07 Jul08 Jul09 Jul10 Jul11 Jul12 Jul13 Jul14 cogs2rev 0.75 0.41 0.34 0.32 0.34 0.32 0.31 0.29 0.29 0.31

Aruba Networks Inc Quarterly Data

 Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 cogs2rev 0.29 0.29 0.30 0.30 0.30 0.30 0.32 0.31 0.29 0.28
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