Shanda Games (Shanda Games) Cost of Goods Sold : $151.9 Mil (TTM As of Dec. 2014)

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What is Shanda Games Cost of Goods Sold?

Shanda Games's cost of goods sold for the six months ended in Dec. 2014 was $151.9 Mil. Its cost of goods sold for the trailing twelve months (TTM) ended in Dec. 2014 was $151.9 Mil.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. Shanda Games's Gross Margin % for the six months ended in Dec. 2014 was 74.71%.

Cost of Goods Sold is also directly linked to Inventory Turnover.

Shanda Games Cost of Goods Sold Historical Data

The historical data trend for Shanda Games's Cost of Goods Sold can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Shanda Games Cost of Goods Sold Chart

Shanda Games Annual Data

Trend

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Cost of Goods Sold

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276.28

323.86

185.43

186.99

151.91

Shanda Games Semi-Annual Data
	Dec07	Dec08	Dec09	Dec10	Dec11	Dec12	Dec13	Dec14
Cost of Goods Sold	Get a 7-Day Free Trial			276.28	323.86	185.43	186.99	151.91

Shanda Games Cost of Goods Sold Calculation

Cost of Goods Sold is the aggregate cost of goods produced and sold, and services rendered during the reporting period. It excludes Total Operating Expense, such as Depreciation, Depletion and Amortization and Selling, General, & Admin. Expense.

For stock reported annually, GuruFocus uses latest annual data as the TTM data. Cost of Goods Sold for the trailing twelve months (TTM) ended in Dec. 2014 was $151.9 Mil.

Shanda Games (NAS:GAME) Cost of Goods Sold Explanation

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

Shanda Games's Gross Margin % for the six months ended in Dec. 2014 is calculated as:

Gross Margin %	=	(Revenue	-	Cost of Goods Sold)	/	Revenue
	=	(600.68	-	151.906)	/	600.68
	=	74.71 %

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:

Shanda Games's Inventory Turnover for the six months ended in Dec. 2014 is calculated as:

Inventory Turnover	=	Cost of Goods Sold	/	Average Total Inventories
	=	151.906	/	0
	=	N/A

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.

Shanda Games Cost of Goods Sold Related Terms

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Shanda Games (Shanda Games) Business Description

Industry

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Traded in Other Exchanges

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Address

Website

http://www.shandagames.com

Shanda Games Ltd was incorporated in the Cayman Islands on June 12, 2008. The Company is an online game company in China in terms of the size, diversity of its game portfolio, game revenues and game player base. It completed its initial public offering on September 30, 2009. It develop and source a broad array of game content through multiple channels, including in-house development, licensing, investment, acquisition, joint development and joint operation. As of March 31, 2015, it operated 35 MMO games and 29 mobile games in China and certain overseas markets. The games operated by the Company are: Mir II, BNB, Woool, Legend of Immortals, Age of Wushu, among others. It competes with other online game developers and operators in China, including Tencent Holdings Limited, NetEase, Inc., Changyou.com Limited, Perfect World Co., Ltd., Giant Interactive, Kingsoft, KongZhong Corporation, NetDragon Websoft, Inc. and The9 Limited.