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Forest Laboratories Inc (NYSE:FRX)
COGS to Revenue
0.23 (As of Mar. 2014)

Forest Laboratories Inc's cost of goods sold for the three months ended in Mar. 2014 was $249 Mil. Its revenue for the three months ended in Mar. 2014 was $1,092 Mil.

Forest Laboratories Inc's COGS to Revenue for the three months ended in Mar. 2014 was 0.23.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. Forest Laboratories Inc's Gross Margin for the three months ended in Mar. 2014 was 77.18%.


Definition

Forest Laboratories Inc's COGS to Revenue for the fiscal year that ended in Mar. 2014 is calculated as

COGS to Revenue=Cost of Goods Sold / Revenue
=760.642 / 3646.899
=0.21

Forest Laboratories Inc's COGS to Revenue for the quarter that ended in Mar. 2014 is calculated as

COGS to Revenue=Cost of Goods Sold / Revenue
=249.287 / 1092.278
=0.23

* 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.

Forest Laboratories Inc's Gross Margin for the three months ended in Mar. 2014 is calculated as:

Gross Margin=1 - COGS to Revenue
=1 - Cost of Goods Sold / Revenue
=1 - 249.287 / 1092.278
=77.18 %

* 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.

Forest Laboratories Inc Annual Data

Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14
cogs2rev 0.220.220.220.210.210.220.220.220.210.21

Forest Laboratories Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
cogs2rev 0.220.210.200.200.210.220.200.190.210.23
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