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Wal-Mart Stores Inc (NYSE:WMT)
COGS to Revenue
0.75 (As of Jul. 2014)

Wal-Mart Stores Inc's cost of goods sold for the three months ended in Jul. 2014 was $90,010 Mil. Its revenue for the three months ended in Jul. 2014 was $120,125 Mil.

Wal-Mart Stores Inc's COGS to Revenue for the three months ended in Jul. 2014 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 Jul. 2014 was 25.07%.


Definition

Wal-Mart Stores Inc's COGS to Revenue for the fiscal year that ended in Jan. 2014 is calculated as

COGS to Revenue=Cost of Goods Sold / Revenue
=358069 / 476294
=0.75

Wal-Mart Stores Inc's COGS to Revenue for the quarter that ended in Jul. 2014 is calculated as

COGS to Revenue=Cost of Goods Sold / Revenue
=90010 / 120125
=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 Jul. 2014 is calculated as:

Gross Margin=1 - COGS to Revenue
=1 - Cost of Goods Sold / Revenue
=1 - 90010 / 120125
=25.07 %

* 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

Cost of Goods Sold, Gross Margin, Revenue


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

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
cogs2rev 0.760.760.760.760.750.750.750.750.750.75

Wal-Mart Stores Inc Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
cogs2rev 0.750.750.750.750.750.750.750.760.750.75
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