COGS to revenue ratio
What is COGS to revenue ratio?
COGS stands for the Cost of goods sold. It is a metric that reflects the cost of production, relative to Total revenue. It is not available for banks and is sometimes measured differently depending on the industry or sector a company is in.
Cost of goods sold / Revenue
What does COGS to revenue ratio mean?
High COGS values may indicate weak efficiency of a company's production processes and its ability to control costs throughout the company. COGS can be interpreted differently based on company or industry, but generally a steady or predictable COGS is better for the company and its valuation.