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Kayne Anderson Energy Development Company (NYSE:KED)
Cost of Goods Sold
$0.00 Mil (TTM As of Feb. 2012)

Kayne Anderson Energy Development Company's cost of goods sold for the three months ended in Feb. 2012 was $0.00 Mil. Its cost of goods sold for the trailing twelve months (TTM) ended in Feb. 2012 was $0.00 Mil.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. Kayne Anderson Energy Development Company's Gross Margin for the three months ended in Feb. 2012 was 100%.

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.

Kayne Anderson Energy Development Company Cost of Goods Sold for the trailing twelve months (TTM) ended in Feb. 2012 was 0 (May. 2011 ) + 0 (Aug. 2011 ) + 0 (Nov. 2011 ) + 0 (Feb. 2012 ) = $0.00 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.

Kayne Anderson Energy Development Company's Gross Margin for the three months ended in Feb. 2012 is calculated as:

Gross Margin=(Revenue - Cost of Goods Sold) / Revenue
=(2.737 - 0) / 2.737
=100 %

* 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:

Kayne Anderson Energy Development Company's Inventory Turnover for the three months ended in Feb. 2012 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.

Kayne Anderson Energy Development Company Annual Data

Nov07Nov08Nov09Nov10Nov11
COGS 0.000.000.000.000.000.000.000.000.000.00

Kayne Anderson Energy Development Company Quarterly Data

Nov09Feb10May10Aug10Nov10Feb11May11Aug11Nov11Feb12
COGS 0.000.000.000.000.000.000.000.000.000.00
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