Switch to:
GuruFocus has detected 4 Warning Signs with Copart Inc \$CPRT.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Copart Inc (NAS:CPRT)
Cost of Goods Sold
\$784 Mil (TTM As of Jan. 2017)

Copart Inc's cost of goods sold for the three months ended in Jan. 2017 was \$203 Mil. Its cost of goods sold for the trailing twelve months (TTM) ended in Jan. 2017 was \$784 Mil.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. Copart Inc's Gross Margin for the three months ended in Jan. 2017 was 41.99%.

Cost of Goods Sold is also directly linked to Inventory Turnover. Copart Inc's Inventory Turnover for the three months ended in Jan. 2017 was 22.46.

Definition

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

Copart Inc Cost of Goods Sold for the trailing twelve months (TTM) ended in Jan. 2017 was 189.599 (Apr. 2016 ) + 191.195 (Jul. 2016 ) + 200.698 (Oct. 2016 ) + 202.767 (Jan. 2017 ) = \$784 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Explanation

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

Copart Inc's Gross Margin for the three months ended in Jan. 2017 is calculated as:

 Gross Margin = (Revenue - Cost of Goods Sold) / Revenue = (349.532 - 202.767) / 349.532 = 41.99 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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:

Copart Inc's Inventory Turnover for the three months ended in Jan. 2017 is calculated as:

 Inventory Turnover = Cost of Goods Sold / Average Inventory = 202.767 / 9.027 = 22.46

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Copart Inc Annual Data

 Jul07 Jul08 Jul09 Jul10 Jul11 Jul12 Jul13 Jul14 Jul15 Jul16 COGS 294 463 431 425 499 515 625 695 663 724

Copart Inc Quarterly Data

 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 COGS 168 161 170 164 168 175 190 191 201 203
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to \$400 per referral. ( Learn More)