Post by
Panther10 on Oct 07, 2014 1:48pm
Gross Margins vs COGS
It is correct to say that the costs of goods sold will be a good indicator of future profits. A more accurate and important number to watch however, is actually your gross margin as it includes the COGS and is much more comprehensive in determining all expenses ( which all others are not necessarily fixed costs). This figure was mentioned in the Aug.27 announcement as going from 40.28 to 50.7 for the 2nd quarter. Also, COGS itself can be somewhat misleading on the quarterly report, due to granite purchases being done in greater volume and less often in order to reduce costs. Hope this info is of some help to investors on this site. Cheers
Comment by
cutstone on Oct 10, 2014 8:00am
The imporant number is retained earnings and you are 10M behind the starting line. IMO