Switch to:
GuruFocus has detected 3 Warning Signs with Capstone Turbine Corp \$CPST.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Capstone Turbine Corp (NAS:CPST)
COGS-to-Revenue
1.20 (As of Dec. 2016)

Capstone Turbine Corp's cost of goods sold for the three months ended in Dec. 2016 was \$24.18 Mil. Its revenue for the three months ended in Dec. 2016 was \$20.19 Mil.

Capstone Turbine Corp's COGS to Revenue for the three months ended in Dec. 2016 was 1.20.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. Capstone Turbine Corp's Gross Margin for the three months ended in Dec. 2016 was -19.81%.

Definition

Capstone Turbine Corp's COGS to Revenue for the fiscal year that ended in Mar. 2016 is calculated as

 COGS to Revenue = Cost of Goods Sold / Revenue = 72.444 / 85.211 = 0.85

Capstone Turbine Corp's COGS to Revenue for the quarter that ended in Dec. 2016 is calculated as

 COGS to Revenue = Cost of Goods Sold / Revenue = 24.184 / 20.185 = 1.20

* 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.

Capstone Turbine Corp'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 - 24.184 / 20.185 = -19.81 %

* 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.

Capstone Turbine Corp Annual Data

 Mar07 Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 cogs2rev 1.24 1.12 1.12 1.14 1.01 0.95 0.89 0.84 0.84 0.85

Capstone Turbine Corp Quarterly Data

 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 cogs2rev 0.84 0.80 0.88 0.83 0.89 0.81 0.89 0.84 0.96 1.20
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)