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PSS World Medical, Inc. (NAS:PSSI)
COGS to Revenue
0.66 (As of Sep. 2012)

PSS World Medical, Inc.'s cost of goods sold for the six months ended in Sep. 2012 was \$279 Mil. Its revenue for the six months ended in Sep. 2012 was \$421 Mil.

PSS World Medical, Inc.'s COGS to Revenue for the six months ended in Sep. 2012 was 0.66.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. PSS World Medical, Inc.'s Gross Margin for the six months ended in Sep. 2012 was 33.79%.

Definition

PSS World Medical, Inc.'s COGS to Revenue for the fiscal year that ended in Mar. 2012 is calculated as

 COGS to Revenue = Cost of Goods Sold / Revenue = 1427.799 / 2102.002 = 0.68

PSS World Medical, Inc.'s COGS to Revenue for the quarter that ended in Sep. 2012 is calculated as

 COGS to Revenue = Cost of Goods Sold / Revenue = 278.622 / 420.798 = 0.66

* 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.

PSS World Medical, Inc.'s Gross Margin for the six months ended in Sep. 2012 is calculated as:

 Gross Margin = 1 - COGS to Revenue = 1 - Cost of Goods Sold / Revenue = 1 - 278.622 / 420.798 = 33.79 %

* 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.

PSS World Medical, Inc. Annual Data

 Mar03 Mar04 Mar05 Mar06 Mar07 Mar08 Mar09 Mar10 Mar11 Mar12 cogs2rev 0.71 0.71 0.71 0.71 0.71 0.71 0.70 0.69 0.69 0.68

PSS World Medical, Inc. Semi-Annual Data

 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 cogs2rev 0.69 0.68 0.69 0.69 0.69 0.68 0.68 0.67 0.67 0.66
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