COGS Calculation - Equity Research

Fundamental Analysis
1

Hi,

I have started learning equity research and was working on a financial model for valuation.

I have encountered an issue with calculation and would need help.

How do we calculate COGS from financials ? Which items are to be considered from Profit and Loss Statement? I have attached screenshot of P&L of Titan Ltd Financials FY2019.

Please clarify.

TITAN
TITAN884×566 77.9 KB

2

By definition, COGS= Opening inventory + Purchases - Closing inventory

On the above case,
Cogs = Cost Of Materials Consumed + Other Direct Exps if any + Purchase of Stock-in-trade +/-
Changes (increase)/Decrease in Inventories. ie 1,398,718/-