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GuruFocus has detected 2 Warning Signs with Hawaiian Holdings Inc \$HA.
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Hawaiian Holdings Inc (NAS:HA)
COGS-to-Revenue
0.42 (As of Mar. 2017)

Hawaiian Holdings Inc's cost of goods sold for the three months ended in Mar. 2017 was \$258 Mil. Its revenue for the three months ended in Mar. 2017 was \$614 Mil.

Hawaiian Holdings Inc's COGS to Revenue for the three months ended in Mar. 2017 was 0.42.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. Hawaiian Holdings Inc's Gross Margin for the three months ended in Mar. 2017 was 58.01%.

Definition

Hawaiian Holdings Inc's COGS to Revenue for the fiscal year that ended in Dec. 2016 is calculated as

 COGS to Revenue = Cost of Goods Sold / Revenue = 824.733 / 2450.58 = 0.34

Hawaiian Holdings Inc's COGS to Revenue for the quarter that ended in Mar. 2017 is calculated as

 COGS to Revenue = Cost of Goods Sold / Revenue = 257.871 / 614.185 = 0.42

* 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.

Hawaiian Holdings Inc's Gross Margin for the three months ended in Mar. 2017 is calculated as:

 Gross Margin = 1 - COGS to Revenue = 1 - Cost of Goods Sold / Revenue = 1 - 257.871 / 614.185 = 58.01 %

* 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.

Hawaiian Holdings Inc Annual Data

 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 cogs2rev 0.52 0.37 0.36 0.39 0.53 0.52 0.56 0.49 0.38 0.34

Hawaiian Holdings Inc Quarterly Data

 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 cogs2rev 0.46 0.46 0.44 0.39 0.23 0.39 0.38 0.36 0.23 0.42
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