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GuruFocus has detected 2 Warning Signs with Barnes & Noble Inc \$BKS.
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Barnes & Noble Inc (NYSE:BKS)
COGS-to-Revenue
0.66 (As of Jan. 2017)

Barnes & Noble Inc's cost of goods sold for the three months ended in Jan. 2017 was \$864 Mil. Its revenue for the three months ended in Jan. 2017 was \$1,301 Mil.

Barnes & Noble Inc's COGS to Revenue for the three months ended in Jan. 2017 was 0.66.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. Barnes & Noble Inc's Gross Margin for the three months ended in Jan. 2017 was 33.58%.

Definition

Barnes & Noble Inc's COGS to Revenue for the fiscal year that ended in Apr. 2016 is calculated as

 COGS to Revenue = Cost of Goods Sold / Revenue = 2836.547 / 4163.844 = 0.68

Barnes & Noble Inc's COGS to Revenue for the quarter that ended in Jan. 2017 is calculated as

 COGS to Revenue = Cost of Goods Sold / Revenue = 864.107 / 1300.908 = 0.66

* 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.

Barnes & Noble 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 - 864.107 / 1300.908 = 33.58 %

* 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.

Barnes & Noble Inc Annual Data

 Jan07 Jan08 Jan09 Apr10 Apr11 Apr12 Apr13 Apr14 Apr15 Apr16 cogs2rev 0.69 0.70 0.69 0.71 0.74 0.73 0.75 0.69 0.67 0.68

Barnes & Noble Inc Quarterly Data

 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 cogs2rev 0.69 0.65 0.67 0.69 0.70 0.65 0.70 0.70 0.70 0.66
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