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Health Management Associates, Inc. (NYSE:HMA)
COGS to Revenue
0.62 (As of Sep. 2013)

Health Management Associates, Inc.'s cost of goods sold for the three months ended in Sep. 2013 was \$876 Mil. Its revenue for the three months ended in Sep. 2013 was \$1,421 Mil.

Health Management Associates, Inc.'s COGS to Revenue for the three months ended in Sep. 2013 was 0.62.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. Health Management Associates, Inc.'s Gross Margin for the three months ended in Sep. 2013 was 38.34%.

Definition

Health Management Associates, Inc.'s COGS to Revenue for the fiscal year that ended in Dec. 2012 is calculated as

 COGS to Revenue = Cost of Goods Sold / Revenue = 3523.864 / 5865.505 = 0.60

Health Management Associates, Inc.'s COGS to Revenue for the quarter that ended in Sep. 2013 is calculated as

 COGS to Revenue = Cost of Goods Sold / Revenue = 876.361 / 1421.243 = 0.62

* 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.

Health Management Associates, Inc.'s Gross Margin for the three months ended in Sep. 2013 is calculated as:

 Gross Margin = 1 - COGS to Revenue = 1 - Cost of Goods Sold / Revenue = 1 - 876.361 / 1421.243 = 38.34 %

* 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

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Health Management Associates, Inc. Annual Data

 Sep03 Sep04 Sep05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 cogs2rev 0.00 0.69 0.69 0.13 0.13 0.55 0.53 0.53 0.61 0.60

Health Management Associates, Inc. Quarterly Data

 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 cogs2rev 0.60 0.60 0.62 0.60 0.59 0.59 0.61 0.62 0.62 0.62
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