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Apollo Education Group Inc (NAS:APOL)
Cost of Goods Sold
$1,283 Mil (TTM As of Feb. 2014)

Apollo Education Group Inc's cost of goods sold for the three months ended in Feb. 2014 was $320 Mil. Its cost of goods sold for the trailing twelve months (TTM) ended in Feb. 2014 was $1,283 Mil.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. Apollo Education Group Inc's Gross Margin for the three months ended in Feb. 2014 was 52.94%.

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


Definition

Cost of goods sold (COGS) refers to the Inventory costs of those goods a business has sold during a particular period.

Apollo Education Group Inc Cost of Goods Sold for the trailing twelve months (TTM) ended in Feb. 2014 was 458.465 (May. 2013 ) + 165.607 (Aug. 2013 ) + 339.679 (Nov. 2013 ) + 319.575 (Feb. 2014 ) = $1,283 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

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

Apollo Education Group Inc's Gross Margin for the three months ended in Feb. 2014 is calculated as:

Gross Margin=(Revenue - Cost of Goods Sold) / Revenue
=(679.058 - 319.575) / 679.058
=52.94 %

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

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:

Apollo Education Group Inc's Inventory Turnover for the three months ended in Feb. 2014 is calculated as:

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

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.


Related Terms

Inventory, Inventory Turnover, Gross Margin, Revenue


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Apollo Education Group Inc Annual Data

Aug04Aug05Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13
COGS 7659521,1101,2371,3711,5681,7331,7601,8011,579

Apollo Education Group Inc Quarterly Data

Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14
COGS 453426561157432384458166340320
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