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Tribune Media Co (OTCPK:TRBAA)
Cost of Goods Sold
\$2,606 Mil (TTM As of Sep. 2008)

Tribune Media Co's cost of goods sold for the three months ended in Sep. 2008 was \$594 Mil. Its cost of goods sold for the trailing twelve months (TTM) ended in Sep. 2008 was \$2,606 Mil.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. Tribune Media Co's Gross Margin for the three months ended in Sep. 2008 was 42.7%.

Cost of Goods Sold is also directly linked to Inventory Turnover. Tribune Media Co's Inventory Turnover for the three months ended in Sep. 2008 was 18.32.

Definition

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

Tribune Media Co Cost of Goods Sold for the trailing twelve months (TTM) ended in Sep. 2008 was 800.566 (Dec. 2007 ) + 599.657 (Mar. 2008 ) + 611.674 (Jun. 2008 ) + 594.161 (Sep. 2008 ) = \$2,606 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.

Tribune Media Co's Gross Margin for the three months ended in Sep. 2008 is calculated as:

 Gross Margin = (Revenue - Cost of Goods Sold) / Revenue = (1036.946 - 594.161) / 1036.946 = 42.7 %

* 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:

Tribune Media Co's Inventory Turnover for the three months ended in Sep. 2008 is calculated as:

 Inventory Turnover (Q: Sep. 2008 ) = Cost of Goods Sold (Q: Sep. 2008 ) / ( (Inventory (Q: Jun. 2008 ) + Inventory (Q: Sep. 2008 )) / 2 ) = 594.161 / ( (33.077 + 31.792) / 2 ) = 594.161 / 32.4345 = 18.32

* 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.

Tribune Media Co Annual Data

 Dec98 Dec99 Dec00 Dec01 Dec02 Dec03 Dec04 Dec05 Dec06 Dec07 COGS 0 0 0 0 0 2,636 2,708 2,696 2,700 2,546

Tribune Media Co Quarterly Data

 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 COGS 698 690 688 615 600 593 801 600 612 594
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