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TAL Education Group (NYSE:XRS)
COGS to Revenue
0.47 (As of Feb. 2014)

TAL Education Group's cost of goods sold for the three months ended in Feb. 2014 was $40.8 Mil. Its revenue for the three months ended in Feb. 2014 was $87.0 Mil.

TAL Education Group's COGS to Revenue for the three months ended in Feb. 2014 was 0.47.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. TAL Education Group's Gross Margin for the three months ended in Feb. 2014 was 53.14%.


Definition

TAL Education Group's COGS to Revenue for the fiscal year that ended in Feb. 2014 is calculated as

COGS to Revenue=Cost of Goods Sold / Revenue
=151.543 / 313.895
=0.48

TAL Education Group's COGS to Revenue for the quarter that ended in Feb. 2014 is calculated as

COGS to Revenue=Cost of Goods Sold / Revenue
=40.767 / 86.999
=0.47

* 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.

TAL Education Group's Gross Margin for the three months ended in Feb. 2014 is calculated as:

Gross Margin=1 - COGS to Revenue
=1 - Cost of Goods Sold / Revenue
=1 - 40.767 / 86.999
=53.14 %

* 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.

TAL Education Group Annual Data

Feb09Feb10Feb11Feb12Feb13Feb14
cogs2rev 0.000.000.000.000.500.540.510.540.510.48

TAL Education Group Quarterly Data

Aug11Nov11Feb12May12Aug12Nov12Feb13Aug13Nov13Feb14
cogs2rev 0.490.580.550.520.470.550.530.470.490.47
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