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GuruFocus has detected 2 Warning Signs with Carnival Corp \$CCL.
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Carnival Corp (NYSE:CCL)
COGS to Revenue
0.50 (As of Aug. 2016)

Carnival Corp's cost of goods sold for the three months ended in Aug. 2016 was \$2,563 Mil. Its revenue for the three months ended in Aug. 2016 was \$5,097 Mil.

Carnival Corp's COGS to Revenue for the three months ended in Aug. 2016 was 0.50.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. Carnival Corp's Gross Margin for the three months ended in Aug. 2016 was 49.72%.

Definition

Carnival Corp's COGS to Revenue for the fiscal year that ended in Nov. 2015 is calculated as

 COGS to Revenue = Cost of Goods Sold / Revenue = 9447 / 15714 = 0.60

Carnival Corp's COGS to Revenue for the quarter that ended in Aug. 2016 is calculated as

 COGS to Revenue = Cost of Goods Sold / Revenue = 2563 / 5097 = 0.50

* 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.

Carnival Corp's Gross Margin for the three months ended in Aug. 2016 is calculated as:

 Gross Margin = 1 - COGS to Revenue = 1 - Cost of Goods Sold / Revenue = 1 - 2563 / 5097 = 49.72 %

* 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.

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.

Carnival Corp Annual Data

 Nov07 Nov08 Nov09 Nov10 Nov11 Nov12 Nov13 Nov14 Nov15 Nov16 cogs2rev 0.59 0.62 0.62 0.63 0.65 0.67 0.69 0.66 0.60 0.57

Carnival Corp Quarterly Data

 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 cogs2rev 0.56 0.67 0.66 0.67 0.51 0.60 0.61 0.61 0.50 0.59
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