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J.C. Penney Co Inc (NYSE:JCP)
COGS to Revenue
0.72 (As of Jan. 2014)

J.C. Penney Co Inc's cost of goods sold for the three months ended in Jan. 2014 was $2,708 Mil. Its revenue for the three months ended in Jan. 2014 was $3,782 Mil.

J.C. Penney Co Inc's COGS to Revenue for the three months ended in Jan. 2014 was 0.72.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. J.C. Penney Co Inc's Gross Margin for the three months ended in Jan. 2014 was 28.40%.


Definition

J.C. Penney Co Inc's COGS to Revenue for the fiscal year that ended in Jan. 2014 is calculated as

COGS to Revenue=Cost of Goods Sold / Revenue
=8367 / 11859
=0.71

J.C. Penney Co Inc's COGS to Revenue for the quarter that ended in Jan. 2014 is calculated as

COGS to Revenue=Cost of Goods Sold / Revenue
=2708 / 3782
=0.72

* 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.

J.C. Penney Co Inc's Gross Margin for the three months ended in Jan. 2014 is calculated as:

Gross Margin=1 - COGS to Revenue
=1 - Cost of Goods Sold / Revenue
=1 - 2708 / 3782
=28.40 %

* 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.

J.C. Penney Co Inc Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
cogs2rev 0.620.610.610.610.630.610.610.640.690.71

J.C. Penney Co Inc Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
cogs2rev 0.630.700.620.670.670.760.690.700.710.72
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