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GuruFocus has detected 4 Warning Signs with Clorox Co $CLX.
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Clorox Co (NYSE:CLX)
COGS-to-Revenue
0.55 (As of Dec. 2016)

Clorox Co's cost of goods sold for the three months ended in Dec. 2016 was $777 Mil. Its revenue for the three months ended in Dec. 2016 was $1,406 Mil.

Clorox Co's COGS to Revenue for the three months ended in Dec. 2016 was 0.55.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. Clorox Co's Gross Margin for the three months ended in Dec. 2016 was 44.74%.


Definition

Clorox Co's COGS to Revenue for the fiscal year that ended in Jun. 2016 is calculated as

COGS to Revenue=Cost of Goods Sold / Revenue
=3163 / 5761
=0.55

Clorox Co's COGS to Revenue for the quarter that ended in Dec. 2016 is calculated as

COGS to Revenue=Cost of Goods Sold / Revenue
=777 / 1406
=0.55

* 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.

Clorox Co'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 - 777 / 1406
=44.74 %

* 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.

Clorox Co Annual Data

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
cogs2rev 0.570.590.570.560.570.580.570.570.560.55

Clorox Co Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
cogs2rev 0.570.570.570.540.550.550.550.550.560.55
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