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Richardson Electronics's cost of goods sold for the three months ended in Aug. 2014 was $24.0 Mil. Its cost of goods sold for the trailing twelve months (TTM) ended in Aug. 2014 was $96.9 Mil.
Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. Richardson Electronics's Gross Margin for the three months ended in Aug. 2014 was 30.72%.
Cost of Goods Sold is also directly linked to Inventory Turnover. Richardson Electronics's Inventory Turnover for the three months ended in Aug. 2014 was 0.69.
Cost of goods sold (COGS) refers to the Inventory costs of those goods a business has sold during a particular period.
Richardson Electronics Cost of Goods Sold for the trailing twelve months (TTM) ended in Aug. 2014 was 24.429 (Nov. 2013 ) + 23.233 (Feb. 2014 ) + 25.219 (May. 2014 ) + 24.041 (Aug. 2014 ) = $96.9 Mil.
* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.
Cost of Goods Sold is directly linked to profitability of the company through Gross Margin.
Richardson Electronics's Gross Margin for the three months ended in Aug. 2014 is calculated as:
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:
Richardson Electronics's Inventory Turnover for the three months ended in Aug. 2014 is calculated as:
|Inventory Turnover (Q: Aug. 2014 )|
|=||Cost of Goods Sold (Q: Aug. 2014 )||/||( (Inventory (Q: May. 2014 )||+||Inventory (Q: Aug. 2014 ))||/ 2 )|
|=||24.041||/||( (33.869||+||35.62)||/ 2 )|
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.
Richardson Electronics Annual Data
Richardson Electronics Quarterly Data