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Mercury Systems Inc (NAS:MRCY)
COGS to Revenue
0.51 (As of Jun. 2015)

Mercury Systems Inc's cost of goods sold for the three months ended in Jun. 2015 was $32.9 Mil. Its revenue for the three months ended in Jun. 2015 was $64.1 Mil.

Mercury Systems Inc's COGS to Revenue for the three months ended in Jun. 2015 was 0.51.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. Mercury Systems Inc's Gross Margin for the three months ended in Jun. 2015 was 48.76%.


Definition

Mercury Systems Inc's COGS to Revenue for the fiscal year that ended in Jun. 2015 is calculated as

COGS to Revenue=Cost of Goods Sold / Revenue
=124.628 / 234.847
=0.53

Mercury Systems Inc's COGS to Revenue for the quarter that ended in Jun. 2015 is calculated as

COGS to Revenue=Cost of Goods Sold / Revenue
=32.852 / 64.119
=0.51

* 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.

Mercury Systems Inc's Gross Margin for the three months ended in Jun. 2015 is calculated as:

Gross Margin=1 - COGS to Revenue
=1 - Cost of Goods Sold / Revenue
=1 - 32.852 / 64.119
=48.76 %

* 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.

Mercury Systems Inc Annual Data

Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15
cogs2rev 0.400.440.420.440.440.430.440.600.550.53

Mercury Systems Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
cogs2rev 0.580.570.570.520.540.540.560.530.530.51
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