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CD International Enterprises Inc (OTCPK:CDII)
Cost of Goods Sold
$1.04 Mil (TTM As of Sep. 2014)

CD International Enterprises Inc's cost of goods sold for the six months ended in Sep. 2014 was $1.04 Mil. Its cost of goods sold for the trailing twelve months (TTM) ended in Sep. 2014 was $1.04 Mil.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. CD International Enterprises Inc's Gross Margin for the six months ended in Sep. 2014 was 39.53%.

Cost of Goods Sold is also directly linked to Inventory Turnover. CD International Enterprises Inc's Inventory Turnover for the six months ended in Sep. 2014 was 518.50.


Definition

Cost of goods sold (COGS) refers to the Inventory costs of those goods a business has sold during a particular period.

For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. CD International Enterprises Inc Cost of Goods Sold for the trailing twelve months (TTM) ended in Sep. 2014 was $1.04 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin.

CD International Enterprises Inc's Gross Margin for the six months ended in Sep. 2014 is calculated as:

Gross Margin=(Revenue - Cost of Goods Sold) / Revenue
=(1.715 - 1.037) / 1.715
=39.53 %

* All numbers are in millions except for per share data and ratio. All numbers are in their own 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”.

Cost of Goods Sold is also directly linked to another concept called Inventory Turnover:

CD International Enterprises Inc's Inventory Turnover for the six months ended in Sep. 2014 is calculated as:

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher inventory turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate inventory turnover. An average inventory is a better indication.


Related Terms

Inventory, Inventory Turnover, Gross Margin, Revenue


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

CD International Enterprises Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Sep10Sep11Sep12Sep13Sep14
COGS 0.000.1112.52149.33206.95105.56168.34102.531.941.04

CD International Enterprises Inc Semi-Annual Data

Sep10Sep11Sep12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
COGS 105.56168.34102.5392.1984.021.941.461.601.051.04
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