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The Scotts Miracle Gro Co (NYSE:SMG)
COGS to Revenue
0.64 (As of Jun. 2016)

The Scotts Miracle Gro Co's cost of goods sold for the three months ended in Jun. 2016 was \$637 Mil. Its revenue for the three months ended in Jun. 2016 was \$994 Mil.

The Scotts Miracle Gro Co's COGS to Revenue for the three months ended in Jun. 2016 was 0.64.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. The Scotts Miracle Gro Co's Gross Margin for the three months ended in Jun. 2016 was 35.95%.

Definition

The Scotts Miracle Gro Co's COGS to Revenue for the fiscal year that ended in Sep. 2015 is calculated as

 COGS to Revenue = Cost of Goods Sold / Revenue = 1951.6 / 3016.5 = 0.65

The Scotts Miracle Gro Co's COGS to Revenue for the quarter that ended in Jun. 2016 is calculated as

 COGS to Revenue = Cost of Goods Sold / Revenue = 636.7 / 994.1 = 0.64

* 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.

The Scotts Miracle Gro Co's Gross Margin for the three months ended in Jun. 2016 is calculated as:

 Gross Margin = 1 - COGS to Revenue = 1 - Cost of Goods Sold / Revenue = 1 - 636.7 / 994.1 = 35.95 %

* 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.

The Scotts Miracle Gro Co Annual Data

 Sep06 Sep07 Sep08 Sep09 Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 cogs2rev 0.65 0.65 0.68 0.65 0.63 0.64 0.65 0.65 0.64 0.65

The Scotts Miracle Gro Co Quarterly Data

 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 cogs2rev 0.60 0.62 0.69 0.86 0.60 0.65 0.63 0.83 0.58 0.64
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