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Wal-Mart Stores Inc (NYSE:WMT)
COGS to Revenue
0.75 (As of Apr. 2016)

Wal-Mart Stores Inc's cost of goods sold for the three months ended in Apr. 2016 was \$86,544 Mil. Its revenue for the three months ended in Apr. 2016 was \$115,904 Mil.

Wal-Mart Stores Inc's COGS to Revenue for the three months ended in Apr. 2016 was 0.75.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. Wal-Mart Stores Inc's Gross Margin for the three months ended in Apr. 2016 was 25.33%.

Definition

Wal-Mart Stores Inc's COGS to Revenue for the fiscal year that ended in Jan. 2016 is calculated as

 COGS to Revenue = Cost of Goods Sold / Revenue = 360984 / 482130 = 0.75

Wal-Mart Stores Inc's COGS to Revenue for the quarter that ended in Apr. 2016 is calculated as

 COGS to Revenue = Cost of Goods Sold / Revenue = 86544 / 115904 = 0.75

* 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.

Wal-Mart Stores Inc's Gross Margin for the three months ended in Apr. 2016 is calculated as:

 Gross Margin = 1 - COGS to Revenue = 1 - Cost of Goods Sold / Revenue = 1 - 86544 / 115904 = 25.33 %

* 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.

Wal-Mart Stores Inc Annual Data

 Jan07 Jan08 Jan09 Jan10 Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 cogs2rev 0.76 0.76 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75

Wal-Mart Stores Inc Quarterly Data

 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 cogs2rev 0.75 0.75 0.75 0.75 0.75 0.75 0.74 0.75 0.75 0.74
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