Diageo (Diageo) COGS-to-Revenue

: 0.39 (As of Dec. 2023)

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Diageo's Cost of Goods Sold for the six months ended in Dec. 2023 was $4,241 Mil. Its Revenue for the six months ended in Dec. 2023 was $10,962 Mil.

Diageo's COGS to Revenue for the six months ended in Dec. 2023 was 0.39.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. Diageo's Gross Margin % for the six months ended in Dec. 2023 was 61.31%.

Diageo COGS-to-Revenue Historical Data

The historical data trend for Diageo's COGS-to-Revenue can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Diageo Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

COGS-to-Revenue

0.38

0.40

0.39

0.40

Diageo Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
COGS-to-Revenue																0.37	0.41	0.38	0.42	0.39

Diageo COGS-to-Revenue Calculation

Diageo's COGS to Revenue for the fiscal year that ended in Jun. 2023 is calculated as

COGS to Revenue	=	Cost of Goods Sold	/	Revenue
	=	8701.739	/	21584.703
	=	0.40

Diageo's COGS to Revenue for the quarter that ended in Dec. 2023 is calculated as

COGS to Revenue	=	Cost of Goods Sold	/	Revenue
	=	4241	/	10962
	=	0.39

Diageo (NYSE:DEO) COGS-to-Revenue Explanation

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin.

Diageo's Gross Margin % for the six months ended in Dec. 2023 is calculated as:

Gross Margin %	=	1	-	COGS to Revenue
	=	1	-	Cost of Goods Sold / Revenue
	=	1	-	4241 / 10962
	=	61.31 %

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.

Diageo COGS-to-Revenue Related Terms

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Diageo (Diageo) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Alcoholic » Diageo PLC (NYSE:DEO) » Definitions » COGS-to-Revenue

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Address

16 Great Marlborough Street, London, GBR, W1F 7HS

Website

https://www.diageo.com

The product of a merger between Grand Metropolitan and Guinness in 1997, Diageo is one of the world's leading producers of branded premium spirits, approximately level with Kweichow Moutai in revenue terms. It also produces and markets beer and wine. Brands include Johnnie Walker blended scotch, Smirnoff vodka, Crown Royal Canadian whiskey, Captain Morgan rum, Casamigos tequila, Tanqueray gin, Baileys Irish Cream, and Guinness stout. Diageo also owns 34% of premium champagne and cognac maker Moet Hennessy, a subsidiary of French luxury-goods maker LVMH Moet Hennessy-Louis Vuitton, and a near-56% stake in India's United Spirits.