Switch to:
Vitesse Semiconductor Corp (NAS:VTSS)
COGS to Revenue
0.41 (As of Dec. 2014)

Vitesse Semiconductor Corp's cost of goods sold for the three months ended in Dec. 2014 was \$10.1 Mil. Its revenue for the three months ended in Dec. 2014 was \$24.8 Mil.

Vitesse Semiconductor Corp's COGS to Revenue for the three months ended in Dec. 2014 was 0.41.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. Vitesse Semiconductor Corp's Gross Margin for the three months ended in Dec. 2014 was 59.39%.

Definition

Vitesse Semiconductor Corp's COGS to Revenue for the fiscal year that ended in Sep. 2014 is calculated as

 COGS to Revenue = Cost of Goods Sold / Revenue = 44.48 / 108.497 = 0.41

Vitesse Semiconductor Corp's COGS to Revenue for the quarter that ended in Dec. 2014 is calculated as

 COGS to Revenue = Cost of Goods Sold / Revenue = 10.053 / 24.755 = 0.41

* 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.

Vitesse Semiconductor Corp's Gross Margin for the three months ended in Dec. 2014 is calculated as:

 Gross Margin = 1 - COGS to Revenue = 1 - Cost of Goods Sold / Revenue = 1 - 10.053 / 24.755 = 59.39 %

* 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.

Vitesse Semiconductor Corp Annual Data

 Sep05 Sep06 Sep07 Sep08 Sep09 Sep10 Sep11 Sep12 Sep13 Sep14 cogs2rev 0.48 0.55 0.51 0.47 0.47 0.43 0.38 0.39 0.45 0.41

Vitesse Semiconductor Corp Quarterly Data

 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 cogs2rev 0.42 0.43 0.46 0.44 0.47 0.39 0.43 0.45 0.37 0.41
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to \$400 per referral. ( Learn More)