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Spartech Corporation (NYSE:SEH)
COGS to Revenue
0.89 (As of Oct. 2012)

Spartech Corporation's cost of goods sold for the three months ended in Oct. 2012 was $254 Mil. Its revenue for the three months ended in Oct. 2012 was $287 Mil.

Spartech Corporation's COGS to Revenue for the three months ended in Oct. 2012 was 0.89.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. Spartech Corporation's Gross Margin for the three months ended in Oct. 2012 was 11.41%.


Definition

Spartech Corporation's COGS to Revenue for the fiscal year that ended in Oct. 2012 is calculated as

COGS to Revenue=Cost of Goods Sold / Revenue
=1037.991 / 1149.355
=0.90

Spartech Corporation's COGS to Revenue for the quarter that ended in Oct. 2012 is calculated as

COGS to Revenue=Cost of Goods Sold / Revenue
=254.067 / 286.804
=0.89

* 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.

Spartech Corporation's Gross Margin for the three months ended in Oct. 2012 is calculated as:

Gross Margin=1 - COGS to Revenue
=1 - Cost of Goods Sold / Revenue
=1 - 254.067 / 286.804
=11.41 %

* 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.

Spartech Corporation Annual Data

Oct03Oct04Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12
cogs2rev 0.860.860.890.880.890.910.870.890.910.90

Spartech Corporation Quarterly Data

Jul10Oct10Jan11Apr11Jul11Oct11Jan12Apr12Jul12Oct12
cogs2rev 0.900.910.920.900.910.910.920.900.900.89
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