Electronic Cigarettes International Group Ltd fka ECIGQ

[hawkeye612]

Let me explain COG's as a percentage of sale this way. If ECIG had 15 million dollars in sales 3rd quarter and their COGs was 12 million dollars, their cost of goods (I am only using this as a hypothetical figure) in relation to their sales were 80%. If they had 4th quarter sales of 23 million and their COGS were 14 million (again a hypothetical figure) their COGS were less then third quarter as a percentage of sales at 61 percent. Therefore their COGS in relationship to their sales were decreasing which of course is a good thing. (that is what I am hoping to see)
I do believe that in the third quarter there was a high figure in returns,(not sure whether they had this on the balance sheet as cost of goods, or a separate line item?)

Agree patience is a virtue.