Switch to:
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
ExamWorks Group Inc (NYSE:EXAM)
COGS-to-Revenue
0.66 (As of Mar. 2016)

ExamWorks Group Inc's cost of goods sold for the three months ended in Mar. 2016 was \$149.1 Mil. Its revenue for the three months ended in Mar. 2016 was \$226.5 Mil.

ExamWorks Group Inc's COGS to Revenue for the three months ended in Mar. 2016 was 0.66.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. ExamWorks Group Inc's Gross Margin for the three months ended in Mar. 2016 was 34.16%.

Definition

ExamWorks Group Inc's COGS to Revenue for the fiscal year that ended in Dec. 2015 is calculated as

 COGS to Revenue = Cost of Goods Sold / Revenue = 536.494 / 819.567 = 0.65

ExamWorks Group Inc's COGS to Revenue for the quarter that ended in Mar. 2016 is calculated as

 COGS to Revenue = Cost of Goods Sold / Revenue = 149.126 / 226.503 = 0.66

* 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.

ExamWorks Group Inc's Gross Margin for the three months ended in Mar. 2016 is calculated as:

 Gross Margin = 1 - COGS to Revenue = 1 - Cost of Goods Sold / Revenue = 1 - 149.126 / 226.503 = 34.16 %

* 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.

ExamWorks Group Inc Annual Data

 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 cogs2rev 0.00 0.00 0.67 0.65 0.63 0.66 0.66 0.66 0.64 0.65

ExamWorks Group Inc Quarterly Data

 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 cogs2rev 0.66 0.64 0.64 0.64 0.65 0.65 0.65 0.65 0.66 0.66
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to \$400 per referral. ( Learn More)