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Electro Rent Corp (NAS:ELRC)
COGS to Revenue
0.41 (As of Aug. 2014)

Electro Rent Corp's cost of goods sold for the three months ended in Aug. 2014 was $25.5 Mil. Its revenue for the three months ended in Aug. 2014 was $61.9 Mil.

Electro Rent Corp's COGS to Revenue for the three months ended in Aug. 2014 was 0.41.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. Electro Rent Corp's Gross Margin for the three months ended in Aug. 2014 was 58.82%.


Definition

Electro Rent Corp's COGS to Revenue for the fiscal year that ended in May. 2014 is calculated as

COGS to Revenue=Cost of Goods Sold / Revenue
=93.044 / 241.137
=0.39

Electro Rent Corp's COGS to Revenue for the quarter that ended in Aug. 2014 is calculated as

COGS to Revenue=Cost of Goods Sold / Revenue
=25.476 / 61.871
=0.41

* 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.

Electro Rent Corp's Gross Margin for the three months ended in Aug. 2014 is calculated as:

Gross Margin=1 - COGS to Revenue
=1 - Cost of Goods Sold / Revenue
=1 - 25.476 / 61.871
=58.82 %

* 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.

Electro Rent Corp Annual Data

May05May06May07May08May09May10May11May12May13May14
cogs2rev 0.120.120.110.170.170.270.380.380.400.39

Electro Rent Corp Quarterly Data

May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14
cogs2rev 0.400.330.410.440.350.370.350.420.400.41
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