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Zale Corp (NYSE:ZLC)
COGS to Revenue
0.47 (As of Jan. 2014)

Zale Corp's cost of goods sold for the three months ended in Jan. 2014 was \$309 Mil. Its revenue for the three months ended in Jan. 2014 was \$656 Mil.

Zale Corp's COGS to Revenue for the three months ended in Jan. 2014 was 0.47.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. Zale Corp's Gross Margin for the three months ended in Jan. 2014 was 52.95%.

Definition

Zale Corp's COGS to Revenue for the fiscal year that ended in Jul. 2013 is calculated as

 COGS to Revenue = Cost of Goods Sold / Revenue = 903.602 / 1888.016 = 0.48

Zale Corp's COGS to Revenue for the quarter that ended in Jan. 2014 is calculated as

 COGS to Revenue = Cost of Goods Sold / Revenue = 308.83 / 656.449 = 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.

Zale Corp's Gross Margin for the three months ended in Jan. 2014 is calculated as:

 Gross Margin = 1 - COGS to Revenue = 1 - Cost of Goods Sold / Revenue = 1 - 308.83 / 656.449 = 52.95 %

* 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.

Zale Corp Annual Data

 Jul04 Jul05 Jul06 Jul07 Jul08 Jul09 Jul10 Jul11 Jul12 Jul13 cogs2rev 0.49 0.49 0.50 0.49 0.51 0.53 0.50 0.49 0.49 0.48

Zale Corp Quarterly Data

 Oct11 Jan12 Apr12 Jul12 Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 cogs2rev 0.47 0.49 0.49 0.48 0.47 0.49 0.47 0.47 0.47 0.47
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