Inventory days are calculated as inventories divided by cost of goods sold (COGS), multiplied by 365.
Cost of goods sold and other operating expenses have been fairly stable as well.
The company said then that its cost of goods sold increased 11.0% because of rising input prices.
This is the cost of goods sold divided by the average value of inventory for a given period.
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Savings should be split approximately 65 percent to operating expense, and 35 percent to cost of goods sold.
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He expects 2012 EPS estimate reductions as record capital spending affects both unit pricing and cost of goods sold.
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When cost structure is maintained almost all the revenue drops to the bottom line beyond the cost of goods sold.
Another red flag to look for is a slowing of inventory turns--that is, inventories are rising faster than cost of goods sold.
Cost of goods sold and margins, both of which are critically important metrics to us evil suits (and should be to you as well).
For privately held companies, the numbers are fairly easy to estimate, at least the cost of goods sold and probably the cost of sale.
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At least some portion of the cost on these products, Whitman said, was booked as a marketing expense, not as cost of goods sold.
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At least inventory costs buying product for resale appear to be treated as cost of goods sold and can be claimed as an offset to income.
Gross profit is the difference between total revenue and cost of goods sold and for many small business owners this measure is intuitive and nothing new.
Since we have an income tax, not a gross receipts tax, you get to deduct your cost of goods sold, if you are selling illegal drugs.
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The gross profit margins (revenue minus the cost of goods sold) at other hardware makers have collapsed to commodity levels of 30%, but Cisco's have climbed to 70%.
Sageworks, a financial information company, analyzed gross margins and cost of sales, or cost of goods sold, for privately owned clothing stores (NAICS code 4481) between 2007 and Oct. 18.
Create detailed buildups for meaningful line items, such as revenue (price x volume by source), cost of goods sold (cost x volume), personnel (by each employee) and marketing (by channel).
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"They do cost us hundreds of millions of dollars an expense we cannot control and become part of the cost of goods sold, which many people do not realize, " said spokesman Eric Hausman.
Consulting the income statement shows that MIPS Technologies managed to streamline operations by minimizing cost of goods sold, increasing necessary costs like research and development, and still being able to boost the bottom line.
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Inventory days, calculated as inventories divided by cost of goods sold (COGS) then multiplied by 365, are more than three days above the full-year 2010 level, indicating privately owned retailers are gearing up for an expected sales increase.
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Like other manufacturers in China, Hon Hai faces rising labour costs, though it is better placed than most. (Mr Yang reckons that labour accounts for only 4.5% of the cost of goods sold.) A move up the value chain may help.
MyBizHomepage.com then encrypts the data from QuickBooks and sucks it into the dashboard, which stays on as long as the Web browser is loaded, and delivers clear, concise status reports on key accounts such as cash, receivables and cost of goods sold.
Since drilling wells is the only means of finding oil and natural gas, IDCs essentially amount to what any other industry would be able to deduct as a part of its cost of goods sold, a concept of accounting and tax law as old as the tax code itself.
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To answer your question about the value of the annual sales of granite countertops, I think taking the imported value (cost of goods sold, and not including depreciation) and multiplying it by about 3 to 3.5 will give us the most accurate number to use, and that would include the wholesaler and fabricator markups as well.
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For all retailers, efficiency is critical and speed of delivery is nearly as important as the cost of the goods sold.
Margin Deterioration: Generally, a flower shop's payroll should eat up 30% of sales, and the cost-of-goods-sold another 30%-33%.
Each layer of distribution adds to the cost of goods thus eating into their already razor-thin margins, since all consumer goods sold in India have an MSRP which is the final price a customer is willing to pay.
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