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Li & Fung Ltd  (OTCPK:LFUGF) Cost of Goods Sold: $14,821 Mil (TTM As of Jun. 2017)

Li & Fung Ltd's cost of goods sold for the six months ended in Jun. 2017 was $6,441 Mil. Its cost of goods sold for the trailing twelve months (TTM) ended in Jun. 2017 was $14,821 Mil.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. Li & Fung Ltd's Gross Margin % for the six months ended in Jun. 2017 was 11.32%.

Cost of Goods Sold is also directly linked to Inventory Turnover. Li & Fung Ltd's Inventory Turnover for the six months ended in Jun. 2017 was 22.21.


Historical Data

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

* Premium members only.

Li & Fung Ltd Annual Data

Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Cost of Goods Sold Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 17,353.48 16,806.59 17,106.99 16,671.66 14,820.80

Li & Fung Ltd Semi-Annual Data

Dec07 Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17
Cost of Goods Sold Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7,664.68 9,006.98 7,062.80 7,758.00 6,441.04

Calculation

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

For stock reported semi-annually, GuruFocus uses latest annual data as the TTM data. Cost of Goods Sold for the trailing twelve months (TTM) ended in Jun. 2017 was $14,821 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.

Li & Fung Ltd's Gross Margin % for the six months ended in Jun. 2017 is calculated as:

Gross Margin %=(Revenue - Cost of Goods Sold) / Revenue
=(7263.594 - 6441.043) / 7263.594
=11.32 %

* 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:

Li & Fung Ltd's Inventory Turnover for the six months ended in Jun. 2017 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.


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