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ShangPharma Corp (NYSE:SHP)
COGS to Revenue
0.72 (As of Sep. 2012)

ShangPharma Corp's cost of goods sold for the three months ended in Sep. 2012 was \$23.1 Mil. Its revenue for the three months ended in Sep. 2012 was \$31.9 Mil.

ShangPharma Corp's COGS to Revenue for the three months ended in Sep. 2012 was 0.72.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. ShangPharma Corp's Gross Margin for the three months ended in Sep. 2012 was 27.55%.

Definition

ShangPharma Corp's COGS to Revenue for the fiscal year that ended in Dec. 2011 is calculated as

 COGS to Revenue = Cost of Goods Sold / Revenue = 75.503 / 111.602 = 0.68

ShangPharma Corp's COGS to Revenue for the quarter that ended in Sep. 2012 is calculated as

 COGS to Revenue = Cost of Goods Sold / Revenue = 23.101 / 31.885 = 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.

ShangPharma Corp's Gross Margin for the three months ended in Sep. 2012 is calculated as:

 Gross Margin = 1 - COGS to Revenue = 1 - Cost of Goods Sold / Revenue = 1 - 23.101 / 31.885 = 27.55 %

* 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.

ShangPharma Corp Annual Data

 Dec08 Dec09 Dec10 Dec11 cogs2rev 0.00 0.00 0.00 0.00 0.00 0.00 0.67 0.67 0.67 0.68

ShangPharma Corp Quarterly Data

 Dec09 Jun10 Sep10 Dec10 Mar11 Sep11 Dec11 Mar12 Jun12 Sep12 cogs2rev 0.67 0.00 0.68 0.68 0.68 0.69 0.67 0.70 0.72 0.72
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