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TAL Education Group (NYSE:XRS)
COGS to Revenue
0.52 (As of May. 2016)

TAL Education Group's cost of goods sold for the three months ended in May. 2016 was \$100.5 Mil. Its revenue for the three months ended in May. 2016 was \$195.1 Mil.

TAL Education Group's COGS to Revenue for the three months ended in May. 2016 was 0.52.

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 May. 2016 was 48.49%.

Definition

TAL Education Group's COGS to Revenue for the fiscal year that ended in Feb. 2016 is calculated as

 COGS to Revenue = Cost of Goods Sold / Revenue = 303.635 / 619.949 = 0.49

TAL Education Group's COGS to Revenue for the quarter that ended in May. 2016 is calculated as

 COGS to Revenue = Cost of Goods Sold / Revenue = 100.487 / 195.095 = 0.52

* 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 May. 2016 is calculated as:

 Gross Margin = 1 - COGS to Revenue = 1 - Cost of Goods Sold / Revenue = 1 - 100.487 / 195.095 = 48.49 %

* 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.

TAL Education Group Annual Data

 Feb09 Feb10 Feb11 Feb12 Feb13 Feb14 Feb15 Feb16 cogs2rev 0.00 0.00 0.50 0.54 0.51 0.54 0.51 0.48 0.47 0.49

TAL Education Group Quarterly Data

 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 cogs2rev 0.47 0.47 0.44 0.49 0.48 0.47 0.46 0.52 0.51 0.52
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