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GuruFocus has detected 4 Warning Signs with Bioanalytical Systems Inc \$BASI.
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Bioanalytical Systems Inc (NAS:BASI)
COGS-to-Revenue
0.70 (As of Dec. 2016)

Bioanalytical Systems Inc's cost of goods sold for the three months ended in Dec. 2016 was \$4.32 Mil. Its revenue for the three months ended in Dec. 2016 was \$6.17 Mil.

Bioanalytical Systems Inc's COGS to Revenue for the three months ended in Dec. 2016 was 0.70.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. Bioanalytical Systems Inc's Gross Margin for the three months ended in Dec. 2016 was 30.11%.

Definition

Bioanalytical Systems Inc's COGS to Revenue for the fiscal year that ended in Sep. 2016 is calculated as

 COGS to Revenue = Cost of Goods Sold / Revenue = 16.016 / 20.441 = 0.78

Bioanalytical Systems Inc's COGS to Revenue for the quarter that ended in Dec. 2016 is calculated as

 COGS to Revenue = Cost of Goods Sold / Revenue = 4.315 / 6.174 = 0.70

* 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.

Bioanalytical Systems Inc's Gross Margin for the three months ended in Dec. 2016 is calculated as:

 Gross Margin = 1 - COGS to Revenue = 1 - Cost of Goods Sold / Revenue = 1 - 4.315 / 6.174 = 30.11 %

* 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.

Bioanalytical Systems Inc Annual Data

 Sep07 Sep08 Sep09 Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 cogs2rev 0.70 0.63 0.76 0.75 0.68 0.76 0.68 0.68 0.67 0.78

Bioanalytical Systems Inc Quarterly Data

 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 cogs2rev 0.72 0.67 0.69 0.60 0.74 0.80 0.75 0.77 0.82 0.70
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