LinkedIn (FRA:LKI) Cost of Goods Sold : €429 Mil (TTM As of Sep. 2016)

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What is LinkedIn Cost of Goods Sold?

LinkedIn's cost of goods sold for the three months ended in Sep. 2016 was €107 Mil. Its cost of goods sold for the trailing twelve months (TTM) ended in Sep. 2016 was €429 Mil.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. LinkedIn's Gross Margin % for the three months ended in Sep. 2016 was 87.52%.

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

LinkedIn Cost of Goods Sold Historical Data

The historical data trend for LinkedIn'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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LinkedIn Cost of Goods Sold Chart

LinkedIn Annual Data

Trend

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Cost of Goods Sold

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61.90

95.65

148.12

238.27

384.51

LinkedIn Quarterly Data
	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16
Cost of Goods Sold	Get a 7-Day Free Trial															99.23	109.24	105.54	107.27	106.72

LinkedIn 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. 2016 adds up the quarterly data reported by the company within the most recent 12 months, which was €429 Mil.

LinkedIn (FRA:LKI) Cost of Goods Sold Explanation

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

LinkedIn's Gross Margin % for the three months ended in Sep. 2016 is calculated as:

Gross Margin %	=	(Revenue	-	Cost of Goods Sold)	/	Revenue
	=	(855.17	-	106.717)	/	855.17
	=	87.52 %

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:

LinkedIn's Inventory Turnover for the three months ended in Sep. 2016 is calculated as:

Inventory Turnover	=	Cost of Goods Sold	/	Average Total Inventories
	=	106.717	/	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.

LinkedIn Cost of Goods Sold Related Terms

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LinkedIn (FRA:LKI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » LinkedIn Corp (FRA:LKI) » Definitions » Cost of Goods Sold

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.linkedin.com

LinkedIn Corp was incorporated in Delaware on March 6, 2003, under the name LinkedIn, Ltd. and changed its name to LinkedIn Corporation in January 2005. The Company operates an online professional network on the Internet through which the Company's members are able to create, manage and share their professional identities online, build and engage with their professional networks, access shared knowledge and insights, and find business opportunities, enabling them to be more productive and successful. The Company currently has approximately over 400 million members in over 200 countries and territories. The Company offers free solutions including Stay Connected & Informed, Advance My Career and Ubiquitous Access; and Monetized Solutions including Talent Solutions, Marketing Solutions, and Premium Subscriptions. Its comprehensive platform provides members with solutions, including applications and tools, to search, connect and communicate with business contacts, learn about attractive career opportunities, join industry groups, research organizations and share information. The Company provides the following key benefits to their members: ability to manage their professional identity, enhanced ability to build and engage with their professional network, access to knowledge, insights and opportunities, aid in matching talent with opportunity, an efficient marketing channel, targeted advertising, and an increase in employee productivity. In addition, its core value of putting members first may conflict with the short-term interests of its business, the number of its registered members is higher than the number of actual members, and a substantial majority of its page views are generated by a minority of its members. Finally, it expects to face increasing competition in the market for online professional networks. The Company is subject to a number of foreign and domestic laws and regulations that affect companies conducting business online, many of which are still evolving and could be interpreted in ways that could harm its business.

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