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Equal Energy Ltd (NYSE:EQU)
COGS to Revenue
0.24 (As of Mar. 2014)

Equal Energy Ltd's cost of goods sold for the three months ended in Mar. 2014 was \$4.81 Mil. Its revenue for the three months ended in Mar. 2014 was \$20.08 Mil.

Equal Energy Ltd's COGS to Revenue for the three months ended in Mar. 2014 was 0.24.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. Equal Energy Ltd's Gross Margin for the three months ended in Mar. 2014 was 76.03%.

Definition

Equal Energy Ltd's COGS to Revenue for the fiscal year that ended in Dec. 2013 is calculated as

 COGS to Revenue = Cost of Goods Sold / Revenue = 17.804 / 61.863 = 0.29

Equal Energy Ltd's COGS to Revenue for the quarter that ended in Mar. 2014 is calculated as

 COGS to Revenue = Cost of Goods Sold / Revenue = 4.814 / 20.084 = 0.24

* 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.

Equal Energy Ltd's Gross Margin for the three months ended in Mar. 2014 is calculated as:

 Gross Margin = 1 - COGS to Revenue = 1 - Cost of Goods Sold / Revenue = 1 - 4.814 / 20.084 = 76.03 %

* 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

Historical Data

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

Equal Energy Ltd Annual Data

 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 cogs2rev 0.44 0.43 0.40 0.53 0.42 0.54 0.47 0.26 0.38 0.29

Equal Energy Ltd Quarterly Data

 Jun11 Sep11 Dec11 Mar12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 cogs2rev 0.40 0.42 0.00 0.38 0.31 0.38 0.24 0.28 0.29 0.24
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