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Kellogg Co  (NYSE:K) COGS-to-Revenue: 0.62 (As of Sep. 2017)

Kellogg Co's Cost of Goods Sold for the three months ended in Sep. 2017 was \$2,041 Mil. Its Revenue for the three months ended in Sep. 2017 was \$3,273 Mil.

Kellogg Co's COGS to Revenue for the three months ended in Sep. 2017 was 0.62.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. Kellogg Co's Gross Margin % for the three months ended in Sep. 2017 was 37.64%.

Historical Data

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

Kellogg Co Annual Data

 COGS-to-Revenue

Kellogg Co Quarterly Data

 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 COGS-to-Revenue 0.61 0.68 0.63 0.60 0.62

Calculation

Kellogg Co's COGS to Revenue for the fiscal year that ended in . 20 is calculated as

 COGS to Revenue = Cost of Goods Sold / Revenue = / =

Kellogg Co's COGS to Revenue for the quarter that ended in Sep. 2017 is calculated as

 COGS to Revenue = Cost of Goods Sold / Revenue = 2041 / 3273 = 0.62

* 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.

Kellogg Co's Gross Margin % for the three months ended in Sep. 2017 is calculated as:

 Gross Margin % = 1 - COGS to Revenue = 1 - Cost of Goods Sold / Revenue = 1 - 2041 / 3273 = 37.64 %

* 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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