Rackspace Hosting (Rackspace Hosting) COGS-to-Revenue : 0.36 (As of Sep. 2016)

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What is Rackspace Hosting COGS-to-Revenue?

Rackspace Hosting's Cost of Goods Sold for the three months ended in Sep. 2016 was $184 Mil. Its Revenue for the three months ended in Sep. 2016 was $516 Mil.

Rackspace Hosting's COGS to Revenue for the three months ended in Sep. 2016 was 0.36.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. Rackspace Hosting's Gross Margin % for the three months ended in Sep. 2016 was 64.37%.

Rackspace Hosting COGS-to-Revenue Historical Data

The historical data trend for Rackspace Hosting'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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Rackspace Hosting COGS-to-Revenue Chart

Rackspace Hosting Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

COGS-to-Revenue

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0.30

0.28

0.32

0.34

Rackspace Hosting Quarterly Data
	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16
COGS-to-Revenue	Get a 7-Day Free Trial															0.34	0.35	0.35	0.33	0.36

Rackspace Hosting COGS-to-Revenue Calculation

Rackspace Hosting's COGS to Revenue for the fiscal year that ended in Dec. 2015 is calculated as

COGS to Revenue	=	Cost of Goods Sold	/	Revenue
	=	681.6	/	2001.3
	=	0.34

Rackspace Hosting's COGS to Revenue for the quarter that ended in Sep. 2016 is calculated as

COGS to Revenue	=	Cost of Goods Sold	/	Revenue
	=	183.9	/	516.2
	=	0.36

Rackspace Hosting (NYSE:RAX) COGS-to-Revenue Explanation

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

Rackspace Hosting's Gross Margin % for the three months ended in Sep. 2016 is calculated as:

Gross Margin %	=	1	-	COGS to Revenue
	=	1	-	Cost of Goods Sold / Revenue
	=	1	-	183.9 / 516.2
	=	64.37 %

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.

Rackspace Hosting COGS-to-Revenue Related Terms

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Rackspace Hosting (Rackspace Hosting) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Rackspace Hosting Inc (NYSE:RAX) » Definitions » COGS-to-Revenue

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.rackspace.com

Rackspace Hosting Inc was incorporated in Delaware in March 2000. The Company, through its operating subsidiaries, is a provider of cloud computing services, managing web-based IT systems for small and medium-sized businesses as well as large enterprises. It offers a portfolio of integrated IT solutions for common business needs, including for ecommerce, web content management, website hosting, data services, office mail and collaboration, and private clouds. It also offers advisory services for technology strategy, security and compliance, application assessment and migration, and DevOps automation. It offers its solutions across a variety of IT form factors, including multi-tenant public cloud, dedicated single-tenant servers, private cloud, and hybrid cloud - all delivered with a commitment to open and standard technologies. Its marketing activities include web-based paid and natural search, participation in technology trade shows, conferences and customer events, advertisements in traditional and electronic (web and email-based) media, and targeted regional public relations activities. Its trademark includes Rackspace, Fanatical Support, and RackConnect. The Company is subject to U.S. federal income tax and various state, local, and international income taxes in numerous jurisdictions.

Executives

Alex Pinchev	officer: EVP, Global Sales & Marketing	BMC SOFTWARE INC, 2101 CITYWEST BLVD, HOUSTON TX 77042
Lila Tretikov	director	149 NEW MONTGOMERY STREET, FLOOR 6, SAN FRANCISCO CA 94105
John E Harper	director	2300 WEST PLANO PARKWAY, PLANO TX 75075
Joseph Saporito	officer: Chief Accounting Officer
Kevin Costello	director	C/O ARIBA INC, 807 11TH AVENUE, SUNNYVALE CA 94089
Graham M Weston	director, 10 percent owner	425 SOLEDAD SUITE 500, SAN ANTONIO TX 78205
Eugene V Defelice	officer: SVP, General Counsel	1506 COVENTRY LANE SOUTHLAKE TX 76092
Michael S Gilliland	director	3720 BEVERLY DRIVE, DALLAS TX 75205
Still George J Jr	director	NORWEST VENTURE PARTNERS, 525 UNIVERSITY AVENUE, SUITE 800, PALO ALTO CA 94301
A Lanham Napier	director, officer: CEO	701 W. CASTANO, SAN ANTONIO TX 78209
Palmer L Moe	director	5000 WALZEM SAN ANTONIO TX 78218
Wells Fargo & Company/mn	10 percent owner	420 MONTGOMERY STREET, SAN FRANCISCO CA 94163
Promod Haque	10 percent owner	C/O NORWEST VENTURE PARTNERS, 525 UNIVERSITY AVENUE, SUITE 800, PALO ALTO CA 94301
Norwest Venture Partners Viii Lp	10 percent owner	C/O NORWEST VENTURE PARTNERS 525 UNIVERSITY AVENUE, SUITE 800 PALO ALTO CA 94301
James J Goetz	10 percent owner	C/O SEQUOIA CAPITAL, 2800 SAND HILL RD, SUITE 101, MENLO PARK CA 94025