Zip Co (ASX:ZIP) COGS-to-Revenue : 0.14 (As of Dec. 2023)

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What is Zip Co COGS-to-Revenue?

Zip Co's Cost of Goods Sold for the six months ended in Dec. 2023 was A$62.0 Mil. Its Revenue for the six months ended in Dec. 2023 was A$430.0 Mil.

Zip Co's COGS to Revenue for the six months ended in Dec. 2023 was 0.14.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. Zip Co's Gross Margin % for the six months ended in Dec. 2023 was 85.58%.

Zip Co COGS-to-Revenue Historical Data

The historical data trend for Zip Co'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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Zip Co COGS-to-Revenue Chart

Zip Co Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

COGS-to-Revenue

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0.33

0.42

0.51

0.63

0.42

Zip Co Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
COGS-to-Revenue	Get a 7-Day Free Trial															0.69	0.57	0.19	0.66	0.14

Zip Co COGS-to-Revenue Calculation

Zip Co's COGS to Revenue for the fiscal year that ended in Jun. 2023 is calculated as

COGS to Revenue	=	Cost of Goods Sold	/	Revenue
	=	291.998	/	693.207
	=	0.42

Zip Co's COGS to Revenue for the quarter that ended in Dec. 2023 is calculated as

COGS to Revenue	=	Cost of Goods Sold	/	Revenue
	=	62.023	/	429.999
	=	0.14

Zip Co (ASX:ZIP) COGS-to-Revenue Explanation

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

Zip Co's Gross Margin % for the six months ended in Dec. 2023 is calculated as:

Gross Margin %	=	1	-	COGS to Revenue
	=	1	-	Cost of Goods Sold / Revenue
	=	1	-	62.023 / 429.999
	=	85.58 %

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.

Zip Co COGS-to-Revenue Related Terms

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Zip Co (ASX:ZIP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Zip Co Ltd (ASX:ZIP) » Definitions » COGS-to-Revenue

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Traded in Other Exchanges

ZIZTF:USA

Address

126 Phillip Street, Level 5, Sydney, NSW, AUS, 2000

Website

https://www.zipmoneylimited.com.au

Zip is a diversified finance provider, offering consumer financing via a line of credit (via Zip Pay and Zip Money) and instalment-based finance (via QuadPay, Spotii, Twisto, and PayFlex); as well as lending to small to midsize enterprises (via Zip Business). Zip's fortunes are largely tied to the buy now, pay later, or BNPL, industry. Most of its products—Zip Pay, QuadPay (Zip U.S.), and PayFlex—do not charge interest based on outstanding balances. Around 60%-70% of Zip Pay's/Zip Money's revenue is derived from customers, mainly via account fees and interest. Meanwhile, its instalment businesses primarily generate revenue by receiving a margin from merchants, which compensates it for accepting all nonpayment risk and for encouraging consumers to transact more frequently.