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American Realty Investors Inc (NYSE:ARL)
COGS to Revenue
0.50 (As of Mar. 2015)

American Realty Investors Inc's cost of goods sold for the three months ended in Mar. 2015 was $11.67 Mil. Its revenue for the three months ended in Mar. 2015 was $23.16 Mil.

American Realty Investors Inc's COGS to Revenue for the three months ended in Mar. 2015 was 0.50.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. American Realty Investors Inc's Gross Margin for the three months ended in Mar. 2015 was 49.61%.


Definition

American Realty Investors Inc's COGS to Revenue for the fiscal year that ended in Dec. 2014 is calculated as

COGS to Revenue=Cost of Goods Sold / Revenue
=42.124 / 79.412
=0.53

American Realty Investors Inc's COGS to Revenue for the quarter that ended in Mar. 2015 is calculated as

COGS to Revenue=Cost of Goods Sold / Revenue
=11.668 / 23.156
=0.50

* 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.

American Realty Investors Inc's Gross Margin for the three months ended in Mar. 2015 is calculated as:

Gross Margin=1 - COGS to Revenue
=1 - Cost of Goods Sold / Revenue
=1 - 11.668 / 23.156
=49.61 %

* 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”.


Related Terms

Cost of Goods Sold, Gross Margin, Revenue


Historical Data

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

American Realty Investors Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
cogs2rev 0.000.670.630.650.590.550.540.490.490.53

American Realty Investors Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
cogs2rev 0.540.490.460.530.450.520.490.560.530.50
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