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iGo Inc  (OTCPK:IGOI) COGS-to-Revenue: 1.36 (As of Dec. 2013)

iGo Inc's Cost of Goods Sold for the three months ended in Dec. 2013 was \$4.36 Mil. Its Revenue for the three months ended in Dec. 2013 was \$3.21 Mil.

iGo Inc's COGS to Revenue for the three months ended in Dec. 2013 was 1.36.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. iGo Inc's Gross Margin % for the three months ended in Dec. 2013 was -35.70%.

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

iGo Inc Annual Data

 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 COGS-to-Revenue 0.69 0.67 0.78 0.82 1.03

iGo Inc Quarterly Data

 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 COGS-to-Revenue 0.86 0.84 0.95 1.14 1.36

Calculation

iGo Inc's COGS to Revenue for the fiscal year that ended in Dec. 2013 is calculated as

 COGS to Revenue = Cost of Goods Sold / Revenue = 17.44 / 16.928 = 1.03

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

 COGS to Revenue = Cost of Goods Sold / Revenue = 4.356 / 3.21 = 1.36

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Explanation

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin.

iGo 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 - 4.356 / 3.21 = -35.70 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.

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