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Electro Rent Corp  (NAS:ELRC) COGS-to-Revenue: 0.27 (As of Feb. 2016)

Electro Rent Corp's Cost of Goods Sold for the three months ended in Feb. 2016 was $10.6 Mil. Its Revenue for the three months ended in Feb. 2016 was $39.5 Mil.

Electro Rent Corp's COGS to Revenue for the three months ended in Feb. 2016 was 0.27.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. Electro Rent Corp's Gross Margin % for the three months ended in Feb. 2016 was 73.21%.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Electro Rent Corp Annual Data

May06 May07 May08 May09 May10 May11 May12 May13 May14 May15
COGS-to-Revenue Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.42 0.42 0.40 0.39 0.42

Electro Rent Corp Quarterly Data

May11 Aug11 Nov11 Feb12 May12 Aug12 Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16
COGS-to-Revenue Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.43 0.43 0.37 0.26 0.27

Calculation

Electro Rent Corp's COGS to Revenue for the fiscal year that ended in May. 2015 is calculated as

COGS to Revenue=Cost of Goods Sold / Revenue
=99.643 / 238.329
=0.42

Electro Rent Corp's COGS to Revenue for the quarter that ended in Feb. 2016 is calculated as

COGS to Revenue=Cost of Goods Sold / Revenue
=10.582 / 39.498
=0.27

* 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.

Electro Rent Corp's Gross Margin % for the three months ended in Feb. 2016 is calculated as:

Gross Margin %=1 - COGS to Revenue
=1 - Cost of Goods Sold / Revenue
=1 - 10.582 / 39.498
=73.21 %

* 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.


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