Cost of Goods Sold (COGS)

Cost of Goods Sold (COGS) refers to the direct costs associated with producing the goods or services a company sells, including expenses like raw materials, labour, and manufacturing overhead. COGS is a key component of the income statement and directly impacts gross profit and overall profitability. Accurately calculating COGS is essential for evaluating operational efficiency, setting pricing strategies, and assessing business performance, particularly important during due diligence in M&A transactions.

P4i assesses and normalises COGS to present a clear view of profitability, helping clients make informed valuation and investment decisions in M&A.