Switch to:
Zoltek Companies, Inc. (NAS:ZOLT)
COGS to Revenue
0.85 (As of Dec. 2013)

Zoltek Companies, Inc.'s cost of goods sold for the three months ended in Dec. 2013 was \$29.8 Mil. Its revenue for the three months ended in Dec. 2013 was \$35.1 Mil.

Zoltek Companies, Inc.'s COGS to Revenue for the three months ended in Dec. 2013 was 0.85.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. Zoltek Companies, Inc.'s Gross Margin for the three months ended in Dec. 2013 was 15.04%.

Definition

Zoltek Companies, Inc.'s COGS to Revenue for the fiscal year that ended in Sep. 2013 is calculated as

 COGS to Revenue = Cost of Goods Sold / Revenue = 110.621 / 140.451 = 0.79

Zoltek Companies, Inc.'s COGS to Revenue for the quarter that ended in Dec. 2013 is calculated as

 COGS to Revenue = Cost of Goods Sold / Revenue = 29.842 / 35.123 = 0.85

* 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.

Zoltek Companies, Inc.'s Gross Margin for the three months ended in Dec. 2013 is calculated as:

 Gross Margin = 1 - COGS to Revenue = 1 - Cost of Goods Sold / Revenue = 1 - 29.842 / 35.123 = 15.04 %

* 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.

Zoltek Companies, Inc. Annual Data

 Sep04 Sep05 Sep06 Sep07 Sep08 Sep09 Sep10 Sep11 Sep12 Sep13 cogs2rev 0.84 0.95 0.76 0.71 0.72 0.78 0.90 0.88 0.76 0.79

Zoltek Companies, Inc. Quarterly Data

 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 cogs2rev 0.84 0.72 0.77 0.77 0.77 0.75 0.79 0.80 0.82 0.85
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)