SHOP (Shopify) COGS-to-Revenue : 0.50 (As of Mar. 2025)

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What is Shopify COGS-to-Revenue?

Shopify's Cost of Goods Sold for the three months ended in Mar. 2025 was $1,191 Mil. Its Revenue for the three months ended in Mar. 2025 was $2,360 Mil.

Shopify's COGS to Revenue for the three months ended in Mar. 2025 was 0.50.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. Shopify's Gross Margin % for the three months ended in Mar. 2025 was 49.53%.

Shopify COGS-to-Revenue Historical Data

The historical data trend for Shopify's COGS-to-Revenue can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Shopify COGS-to-Revenue Chart

Shopify Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

COGS-to-Revenue

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0.47

0.46

0.51

0.50

Shopify Quarterly Data
	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25
COGS-to-Revenue	Get a 7-Day Free Trial															0.49	0.49	0.48	0.52	0.50

Shopify COGS-to-Revenue Calculation

Shopify's COGS to Revenue for the fiscal year that ended in Dec. 2024 is calculated as

COGS to Revenue	=	Cost of Goods Sold	/	Revenue
	=	4408	/	8880
	=	0.50

Shopify's COGS to Revenue for the quarter that ended in Mar. 2025 is calculated as

COGS to Revenue	=	Cost of Goods Sold	/	Revenue
	=	1191	/	2360
	=	0.50

Shopify (NAS:SHOP) COGS-to-Revenue Explanation

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

Shopify's Gross Margin % for the three months ended in Mar. 2025 is calculated as:

Gross Margin %	=	1	-	COGS to Revenue
	=	1	-	Cost of Goods Sold / Revenue
	=	1	-	1191 / 2360
	=	49.53 %

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.

Shopify COGS-to-Revenue Related Terms

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Shopify Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Shopify Inc (NAS:SHOP) » Definitions » COGS-to-Revenue

Comparable Companies

Traded in Other Exchanges

SHOP N:Mexico 0VHA:UK 307:Germany SHOP:Canada S2HO34:Brazil 307:Bulgaria

Address

151 O\'Connor Street, Ground Floor, Ottawa, ON, CAN, K2P 2L8

Website

https://www.shopify.com

Shopify offers an e-commerce platform primarily to small and medium-size businesses. The firm has two segments. The subscription solutions segment allows Shopify merchants to conduct e-commerce on a variety of platforms, including the company's website, physical stores, pop-up stores, kiosks, social networks (Facebook), and Amazon. The merchant solutions segment offers add-on products for the platform that facilitate e-commerce and include Shopify Payments, Shopify Shipping, and Shopify Capital.