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Costco Wholesale Corp  (NAS:COST) COGS-to-Revenue: 0.87 (As of Feb. 2019)

Costco Wholesale Corp's Cost of Goods Sold for the three months ended in Feb. 2019 was $30,720 Mil. Its Revenue for the three months ended in Feb. 2019 was $35,396 Mil.

Costco Wholesale Corp's COGS to Revenue for the three months ended in Feb. 2019 was 0.87.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. Costco Wholesale Corp's Gross Margin % for the three months ended in Feb. 2019 was 13.21%.


Historical Data

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

* Premium members only.

Costco Wholesale Corp Annual Data

Aug09 Aug10 Aug11 Aug12 Aug13 Aug14 Aug15 Aug16 Aug17 Aug18
COGS-to-Revenue Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.87 0.87 0.87 0.87 0.87

Costco Wholesale Corp Quarterly Data

May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19
COGS-to-Revenue Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.87 0.87 0.87 0.87 0.87

Calculation

Costco Wholesale Corp's COGS to Revenue for the fiscal year that ended in Aug. 2018 is calculated as

COGS to Revenue=Cost of Goods Sold / Revenue
=123152 / 141576
=0.87

Costco Wholesale Corp's COGS to Revenue for the quarter that ended in Feb. 2019 is calculated as

COGS to Revenue=Cost of Goods Sold / Revenue
=30720 / 35396
=0.87

* 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.

Costco Wholesale Corp's Gross Margin % for the three months ended in Feb. 2019 is calculated as:

Gross Margin %=1 - COGS to Revenue
=1 - Cost of Goods Sold / Revenue
=1 - 30720 / 35396
=13.21 %

* 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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