Cost of Goods Sold (COGS) as a Percentage of Revenue

Benchmarking Report

Cost of Goods Sold (COGS) as a Percentage of Revenue

This PDF report includes benchmarking data (in a visual, chart-based format), an comprehensive KPI definition, characteristics of high performers and technical details on measuring Cost of Goods Sold (COGS) as a Percentage of Revenue. Purchase and download this easy-to-understand, presentation-ready report immediately to compare performance levels, set attainable performance targets, and push towards best-in-class performance for this KPI.

What is Cost of Goods Sold (COGS) as a Percentage of Revenue?

The cost of goods sold (COGS) to customers divided by total dollar amount of sales generated over the same period of time. COGS typically includes material costs, production/manufacturing costs (i.e., labor costs), and the cost of carrying the inventory before it is sold.

Why should Cost of Goods Sold (COGS) as a Percentage of Revenue be measured?

Cost of Goods Sold (COGS) as a Percentage of Revenue measures the direct cost attributed to the production of products sold (i.e., materials and labor) relative to the total revenue generated by the company over the same period of time. A high value for this metric can be indicative of inefficient procurement and/or production/manufacturing processes. Such inefficiencies can drive COGS to unmanageable levels, prevent customers from buying such expensive merchandise and expose the company to financial risks by preventing the company from paying its liabilities on time.

Download a Sample Cost of Goods Sold (COGS) as a Percentage of Revenue

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