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Brocade Communications Systems Inc (NAS:BRCD)
COGS to Revenue
0.34 (As of Apr. 2014)

Brocade Communications Systems Inc's cost of goods sold for the three months ended in Apr. 2014 was $183 Mil. Its revenue for the three months ended in Apr. 2014 was $537 Mil.

Brocade Communications Systems Inc's COGS to Revenue for the three months ended in Apr. 2014 was 0.34.

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 Apr. 2014 was 65.99%.


Definition

Brocade Communications Systems Inc's COGS to Revenue for the fiscal year that ended in Oct. 2013 is calculated as

COGS to Revenue=Cost of Goods Sold / Revenue
=813.985 / 2222.864
=0.37

Brocade Communications Systems Inc's COGS to Revenue for the quarter that ended in Apr. 2014 is calculated as

COGS to Revenue=Cost of Goods Sold / Revenue
=182.618 / 536.91
=0.34

* 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.

Brocade Communications Systems Inc's Gross Margin for the three months ended in Apr. 2014 is calculated as:

Gross Margin=1 - COGS to Revenue
=1 - Cost of Goods Sold / Revenue
=1 - 182.618 / 536.91
=65.99 %

* 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

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 own currency.

Brocade Communications Systems Inc Annual Data

Oct04Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13
cogs2rev 0.450.440.410.470.410.470.410.400.380.37

Brocade Communications Systems Inc Quarterly Data

Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14
cogs2rev 0.390.380.390.380.360.380.370.350.340.34
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