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Brady Corp (NYSE:BRC)
COGS to Revenue
0.50 (As of Oct. 2016)

Brady Corp's cost of goods sold for the three months ended in Oct. 2016 was $140 Mil. Its revenue for the three months ended in Oct. 2016 was $280 Mil.

Brady Corp's COGS to Revenue for the three months ended in Oct. 2016 was 0.50.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. Brady Corp's Gross Margin for the three months ended in Oct. 2016 was 50.10%.


Definition

Brady Corp's COGS to Revenue for the fiscal year that ended in Jul. 2016 is calculated as

COGS to Revenue=Cost of Goods Sold / Revenue
=561.852 / 1120.625
=0.50

Brady Corp's COGS to Revenue for the quarter that ended in Oct. 2016 is calculated as

COGS to Revenue=Cost of Goods Sold / Revenue
=139.818 / 280.176
=0.50

* 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.

Brady Corp's Gross Margin for the three months ended in Oct. 2016 is calculated as:

Gross Margin=1 - COGS to Revenue
=1 - Cost of Goods Sold / Revenue
=1 - 139.818 / 280.176
=50.10 %

* 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

Cost of Goods Sold, Gross Margin, Revenue


Historical Data

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

Brady Corp Annual Data

Jul07Jul08Jul09Jul10Jul11Jul12Jul13Jul14Jul15Jul16
cogs2rev 0.520.510.520.500.440.450.470.500.520.50

Brady Corp Quarterly Data

Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16
cogs2rev 0.510.520.510.510.550.510.510.490.500.50
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