Ann: Appendix 4C - quarterly, page-53

From your chart I looked at % revenue increase from the previous quarter vs % COGS from previous quarter. From there I subracted %COGS increase from %revenue increase to see if there was a trend forming. In an ideal world you would expect a similar revenue increase the following quarter in line with the COGS increase.

I corrected (brought forward) %COGS increase by one quarter to try and match it with corresponding revenue assuming there is a quarter lag in receiving revenue from those COGS. This is what it came out like.


A negative number means COGS increased by a higher % than revenue and a positive number the opposite.

Obviously early on wild swings were evident due to low baseline numbers showing big % swings. This FY things have smoothed out as the business grows (especially Q1 and 3 showing near exact correlation). Interesting that there is a negative differential (predicted) this quarter which perhaps is an indication (or confirmation) that a greater number of strata have moved to a quarterly billing cycle and hence receipts may span 2 quarters.