Asiainfo-Linkage, (FRA:AFB) Cost of Goods Sold : €276.8 Mil (TTM As of Sep. 2013)

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What is Asiainfo-Linkage, Cost of Goods Sold?

Asiainfo-Linkage,'s cost of goods sold for the three months ended in Sep. 2013 was €63.5 Mil. Its cost of goods sold for the trailing twelve months (TTM) ended in Sep. 2013 was €276.8 Mil.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. Asiainfo-Linkage,'s Gross Margin % for the three months ended in Sep. 2013 was 40.73%.

Cost of Goods Sold is also directly linked to Inventory Turnover. Asiainfo-Linkage,'s Inventory Turnover for the three months ended in Sep. 2013 was 3.01.

Asiainfo-Linkage, Cost of Goods Sold Historical Data

The historical data trend for Asiainfo-Linkage,'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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Asiainfo-Linkage, Cost of Goods Sold Chart

Asiainfo-Linkage, Annual Data

Trend

Dec03

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Cost of Goods Sold

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64.18

68.91

131.39

207.55

254.33

Asiainfo-Linkage, Quarterly Data
	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13
Cost of Goods Sold	Get a 7-Day Free Trial															64.32	74.66	72.10	66.55	63.48

Asiainfo-Linkage, 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.

Cost of Goods Sold for the trailing twelve months (TTM) ended in Sep. 2013 adds up the quarterly data reported by the company within the most recent 12 months, which was €276.8 Mil.

Asiainfo-Linkage, (FRA:AFB) Cost of Goods Sold Explanation

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

Asiainfo-Linkage,'s Gross Margin % for the three months ended in Sep. 2013 is calculated as:

Gross Margin %	=	(Revenue	-	Cost of Goods Sold)	/	Revenue
	=	(107.106	-	63.477)	/	107.106
	=	40.73 %

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:

Asiainfo-Linkage,'s Inventory Turnover for the three months ended in Sep. 2013 is calculated as:

Inventory Turnover	=	Cost of Goods Sold	/	Average Total Inventories
	=	63.477	/	21.054
	=	3.01

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.

Asiainfo-Linkage, Cost of Goods Sold Related Terms

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Asiainfo-Linkage, (FRA:AFB) Business Description

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GURUFOCUS.COM » STOCK LIST » Technology » Software » Asiainfo-Linkage, Inc. (FRA:AFB) » Definitions » Cost of Goods Sold

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Address

Website

http://www.asiainfo-linkage.com

Asiainfo-Linkage, Inc, a Delaware corporation, commenced operations in the United States in 1993. The Company is a provider of telecommunications software solutions and information technology, or IT, related services in China. It also provides variety of services including business operational consulting service, IT architecture planning service, system integration services based on its own products and other third party software and hardware, change of request implementation, maintenance on customer premise and management services. The Company's suite of innovative solutions includes business and operation support systems, network infrastructure solutions, and service application solutions. The products and services it offers to the telecommunications industry include various software product suites, most of which are designed with open architecture to facilitate further development and customization for specific purposes. The Company's core BSS/OSS offering primarily includes convergent billing solutions, CRM and BI systems. It also provides software enhancement and maintenance services for the systems it develop, as well as system integration and other value-added IT consulting and planning services. Its OSS Package is a highly comprehensive and intelligent service fulfilment framework based on OSS fulfilment domain definition in eTOM model and OSS specifications of telecom operators. In OSS Package, process analysis methodology and project implementation methodology enables a rapid implementation of telecom service fulfilment system. It provides process analysis methodology, project implementation methodology, inventory data model, interface integration framework and built-in inventory management templates. Its network management solutions include network access and backbone infrastructure planning, design and implementation for telecommunications and Internet service providers. These services include technical training for its customers, as well as professional maintenance and support services. The Company designs and provides a series of service applications that enable telecommunications operators and service providers to offer value-added services, such as Short Message Service, or SMS, mobile email, mobile entertainment and mobile e-commerce. These applications often involve licensed third-party software that it's customizes or integrate with its proprietary software to provide individualized solutions. The Company's software and services enable its customers to build, maintain, operate, manage and improve their communications infrastructure. Its largest customers are the major telecommunications carriers in China and their provincial subsidiaries, including China Mobile Communications Corporation, or China Mobile, China United Telecommunications Corporation, or China Unicom, and China Telecommunications Corporation, or China Telecom. The Company relies on its own sales force to market and sell its products and services