Switch to:
GuruFocus has detected 4 Warning Signs with Brocade Communications Systems Inc \$BRCD.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
COGS to Revenue
0.36 (As of Oct. 2016)

Brocade Communications Systems Inc's cost of goods sold for the three months ended in Oct. 2016 was \$237 Mil. Its revenue for the three months ended in Oct. 2016 was \$657 Mil.

Brocade Communications Systems Inc's COGS to Revenue for the three months ended in Oct. 2016 was 0.36.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. Brocade Communications Systems Inc's Gross Margin for the three months ended in Oct. 2016 was 63.95%.

Definition

Brocade Communications Systems 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 = 829.271 / 2345.61 = 0.35

Brocade Communications Systems Inc's COGS to Revenue for the quarter that ended in Oct. 2016 is calculated as

 COGS to Revenue = Cost of Goods Sold / Revenue = 236.985 / 657.299 = 0.36

* 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.

Brocade Communications Systems Inc'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 - 236.985 / 657.299 = 63.95 %

* 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.

Brocade Communications Systems Inc Annual Data

 Oct07 Oct08 Oct09 Oct10 Oct11 Oct12 Oct13 Oct14 Oct15 Oct16 cogs2rev 0.47 0.41 0.47 0.41 0.40 0.38 0.37 0.34 0.32 0.35

Brocade Communications Systems Inc Quarterly Data

 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 cogs2rev 0.34 0.33 0.32 0.32 0.33 0.33 0.32 0.33 0.40 0.36
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to \$400 per referral. ( Learn More)