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TIBCO Software Inc (NAS:TIBX)
COGS to Revenue
0.32 (As of Aug. 2014)

TIBCO Software Inc's cost of goods sold for the three months ended in Aug. 2014 was \$81 Mil. Its revenue for the three months ended in Aug. 2014 was \$256 Mil.

TIBCO Software Inc's COGS to Revenue for the three months ended in Aug. 2014 was 0.32.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. TIBCO Software Inc's Gross Margin for the three months ended in Aug. 2014 was 68.34%.

Definition

TIBCO Software Inc's COGS to Revenue for the fiscal year that ended in Nov. 2013 is calculated as

 COGS to Revenue = Cost of Goods Sold / Revenue = 307.445 / 1069.95 = 0.29

TIBCO Software Inc's COGS to Revenue for the quarter that ended in Aug. 2014 is calculated as

 COGS to Revenue = Cost of Goods Sold / Revenue = 80.934 / 255.602 = 0.32

* 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.

TIBCO Software Inc's Gross Margin for the three months ended in Aug. 2014 is calculated as:

 Gross Margin = 1 - COGS to Revenue = 1 - Cost of Goods Sold / Revenue = 1 - 80.934 / 255.602 = 68.34 %

* 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.

TIBCO Software Inc Annual Data

 Nov04 Nov05 Nov06 Nov07 Nov08 Nov09 Nov10 Nov11 Nov12 Nov13 cogs2rev 0.24 0.28 0.26 0.28 0.28 0.26 0.26 0.27 0.28 0.29

TIBCO Software Inc Quarterly Data

 May12 Aug12 Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 cogs2rev 0.28 0.28 0.25 0.31 0.30 0.29 0.26 0.31 0.31 0.32
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