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Walt Disney Co (NYSE:DIS)
Cost of Goods Sold
$29,993 Mil (TTM As of Sep. 2016)

Walt Disney Co's cost of goods sold for the three months ended in Sep. 2016 was $7,305 Mil. Its cost of goods sold for the trailing twelve months (TTM) ended in Sep. 2016 was $29,993 Mil.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. Walt Disney Co's Gross Margin for the three months ended in Sep. 2016 was 44.41%.

Cost of Goods Sold is also directly linked to Inventory Turnover. Walt Disney Co's Inventory Turnover for the three months ended in Sep. 2016 was 5.32.


Definition

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

Walt Disney Co Cost of Goods Sold for the trailing twelve months (TTM) ended in Sep. 2016 was 8623 (Dec. 2015 ) + 6864 (Mar. 2016 ) + 7201 (Jun. 2016 ) + 7305 (Sep. 2016 ) = $29,993 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

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

Walt Disney Co's Gross Margin for the three months ended in Sep. 2016 is calculated as:

Gross Margin=(Revenue - Cost of Goods Sold) / Revenue
=(13142 - 7305) / 13142
=44.41 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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:

Walt Disney Co's Inventory Turnover for the three months ended in Sep. 2016 is calculated as:

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

Walt Disney Co Annual Data

Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15Sep16
COGS 28,72930,40030,45231,33733,11223,46825,03426,42028,36429,993

Walt Disney Co Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
COGS 6,3647,0197,6566,6906,6637,3558,6236,8647,2017,305
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