Cost of Goods Sold (COGS)
cost_of_goods
Overview
Cost of Goods Sold (COGS) represents the direct costs attributable to the production of the goods sold.
COGS = Total cost of goods sold
The calculation is based on data from the Orders table.
Detailed Breakdown
The formula above is derived from the following components:
- Cost of Goods =
SUM(cost_of_goods)
--> Orders table
Insights and Actions
Cost of Goods Sold (COGS) represents the direct expenses related to producing the goods you sell, providing critical insights into operational efficiency and profitability:
- Evaluate Profit Margins: Track COGS in relation to revenue to assess gross profit margins and identify areas to improve profitability.
- Optimize Supplier Costs: Analyze trends in COGS to identify opportunities to renegotiate supplier contracts or reduce material costs.
- Forecast Financial Performance: Use COGS data to predict future expenses and set accurate pricing strategies that maintain healthy margins.
Related Metrics
- Order Revenue: Helps compare production costs against revenue to calculate gross profit and assess pricing strategies.
- Net Profit: Tracks overall profitability, providing a comprehensive view of the impact of COGS on business performance.
- Shipping Costs: Offers additional context for operational expenses, enabling a more complete analysis of cost structures.
Example Use
Prompt
What was my total cogs yesterday?
Response
Query
SELECT
SUM(ot.cost_of_goods) AS total_cogs
FROM
orders_table AS ot
WHERE
ot.event_date = CURRENT_DATE() - 1;
Updated 10 days ago