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GDF Suez (OTCPK:GDFZY)
Cost of Goods Sold
\$54,445 Mil (TTM As of Dec. 2014)

GDF Suez's cost of goods sold for the six months ended in Dec. 2014 was \$24,605 Mil. Its cost of goods sold for the trailing twelve months (TTM) ended in Dec. 2014 was \$54,445 Mil.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. GDF Suez's Gross Margin for the six months ended in Dec. 2014 was 43.42%.

Cost of Goods Sold is also directly linked to Inventory Turnover. GDF Suez's Inventory Turnover for the six months ended in Dec. 2014 was 3.97.

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. GDF Suez Cost of Goods Sold for the trailing twelve months (TTM) ended in Dec. 2014 was \$54,445 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.

GDF Suez's Gross Margin for the six months ended in Dec. 2014 is calculated as:

 Gross Margin = (Revenue - Cost of Goods Sold) / Revenue = (43490.7521578 - 24605.4254007) / 43490.7521578 = 43.42 %

* 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:

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

 Inventory Turnover = Cost of Goods Sold / Average Inventory = 24605.4254007 / 6192.04350507 = 3.97

* 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

Historical Data

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

GDF Suez Annual Data

 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 COGS 19,329 27,754 30,989 48,485 60,359 59,090 61,441 68,474 69,130 54,445

GDF Suez Semi-Annual Data

 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 COGS 27,385 29,459 33,911 30,475 34,562 32,324 35,912 31,790 32,880 24,605
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