Coventry Health Care, (FRA:HCA) Cost of Goods Sold : €8,539 Mil (TTM As of Mar. 2013)

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What is Coventry Health Care, Cost of Goods Sold?

Coventry Health Care,'s cost of goods sold for the three months ended in Mar. 2013 was €2,120 Mil. Its cost of goods sold for the trailing twelve months (TTM) ended in Mar. 2013 was €8,539 Mil.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. Coventry Health Care,'s Gross Margin % for the three months ended in Mar. 2013 was 21.99%.

Cost of Goods Sold is also directly linked to Inventory Turnover.

Coventry Health Care, Cost of Goods Sold Historical Data

The historical data trend for Coventry Health Care,'s Cost of Goods Sold 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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Coventry Health Care, Cost of Goods Sold Chart

Coventry Health Care, Annual Data

Trend

Dec03

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Cost of Goods Sold

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6,707.49

7,614.75

6,439.61

7,086.96

8,473.88

Coventry Health Care, Quarterly Data
	Jun08	Sep08	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13
Cost of Goods Sold	Get a 7-Day Free Trial															2,177.36	2,250.97	2,126.99	2,041.41	2,120.02

Coventry Health Care, Cost of Goods Sold Calculation

Cost of Goods Sold is the aggregate cost of goods produced and sold, and services rendered during the reporting period. It excludes Total Operating Expense, such as Depreciation, Depletion and Amortization and Selling, General, & Admin. Expense.

Cost of Goods Sold for the trailing twelve months (TTM) ended in Mar. 2013 adds up the quarterly data reported by the company within the most recent 12 months, which was €8,539 Mil.

Coventry Health Care, (FRA:HCA) Cost of Goods Sold Explanation

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

Coventry Health Care,'s Gross Margin % for the three months ended in Mar. 2013 is calculated as:

Gross Margin %	=	(Revenue	-	Cost of Goods Sold)	/	Revenue
	=	(2717.621	-	2120.017)	/	2717.621
	=	21.99 %

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.

Cost of Goods Sold is also directly linked to another concept called Inventory Turnover:

Coventry Health Care,'s Inventory Turnover for the three months ended in Mar. 2013 is calculated as:

Inventory Turnover	=	Cost of Goods Sold	/	Average Total Inventories
	=	2120.017	/	0
	=	N/A

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher inventory turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate inventory turnover. An average inventory is a better indication.

Coventry Health Care, Cost of Goods Sold Related Terms

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Coventry Health Care, (FRA:HCA) Business Description

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GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Plans » Coventry Health Care, Inc. (FRA:HCA) » Definitions » Cost of Goods Sold

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Coventry Health Care, Inc. was incorporated under the laws of the State of Delaware on December 17, 1997 and is the successor to Coventry Corporation, which was incorporated on November 21, 1986. The Company provides risk and fee-based managed care products and services to a cross section of individuals, employer and government-funded groups, government agencies, and other insurance carriers and administrators. Its operations are segmented into three - Commercial Products, Government Programs and Workers' Compensation. The Commercial Products segment provides health plan commercial risk, commercial management services, Medicare Advantage Coordinated Care Plans, and Medicaid products. Its health plans offer commercial risk products, including health maintenance organization, preferred provider organization, and point of service products to individuals and employer groups. This segment also provides health insurance benefits under the Federal Employees Health Benefits Program; and administrative services only products, such as medical claims administration, pharmacy benefits management, and utilization management and quality assurance programs. In addition, it offers consumer-directed benefit options comprising health reimbursement and savings accounts to commercial customers; provider network rental services through a PPO network to national, regional, and local third-party administrators, as well as insurance carriers; and coordination of mental health and substance abuse treatment services. The Government Programs segment offers Medicare Part D program that provides access to prescription drug coverage for eligible beneficiaries; and comprehensive health benefits on a risk basis to members participating in the Medicare Advantage CCP and Medicaid programs. Its Workers Compensation segment offers fee-based managed care services, such as provider network access, bill review, pharmacy benefit management, durable medical equipment and ancillary services, and care management services to underwriters and administrators of workers compensation insurance. The company serves individuals, employer and government-funded groups, government agencies, and other insurance carriers and administrators through direct sales staff, and independent insurance brokers and agents.