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Acuity Brands Inc (NYSE:AYI)
Selling, General, & Admin. Expense
$891 Mil (TTM As of May. 2016)

Selling, general, & admin. expense (SGA) includes the direct and indirect costs and all general and administrative expenses of a company. Acuity Brands Inc's selling, general, & admin. expense for the three months ended in May. 2016 was $247 Mil. Its selling, general, & admin. expense for the trailing twelve months (TTM) ended in May. 2016 was $891 Mil.


Definition

Selling, General, & Admin. Expense (SGA) includes the direct and indirect costs and all general and administrative expenses of a company. For instance, personnel cost, advertising, rent, communication costs are all part of SGA.

Acuity Brands Inc Selling, General, & Admin. Expense for the trailing twelve months (TTM) ended in May. 2016 was 206.9 (Aug. 2015 ) + 206.6 (Nov. 2015 ) + 230.1 (Feb. 2016 ) + 247.2 (May. 2016 ) = $891 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

An efficient operation keeps SGA costs low and thus has higher profit margin. The percentage of SGA relative to total revenue is an indication of how efficiently the company operates. Compare this percentage among the companies in the same industry is a good way of finding more efficient operations. A comparison of the SGA cost relative to the revenue with the historical value can also be an indication of how efficient the company has become.

Warren Buffett likes companies with consistent SGA as the percentage of gross profit.

Companies with no durable competitive advantage show wild variation in SG&A as % of Gross Profit.

If SGA is less than 30% of Gross Profit, it is fantastic. If SGA is nearing 100%, it is is in highly competitive industry.


Related Terms

Gross Profit, Cost of Goods Sold


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Acuity Brands Inc Annual Data

Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13Aug14Aug15
SG&A 772813540455495541567608680757

Acuity Brands Inc Quarterly Data

Feb14May14Aug14Nov14Feb15May15Aug15Nov15Feb16May16
SG&A 157171193176178196207207230247
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