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Best Buy Co Inc (NYSE:BBY)
Selling, General, & Admin. Expense
$7,978 Mil (TTM As of Jul. 2014)

Selling, general, & admin. expense (SGA) includes the direct and indirect costs and all general and administrative expenses of a company. Best Buy Co Inc's selling, general, & admin. expense for the three months ended in Jul. 2014 was $1,812 Mil. Its selling, general, & admin. expense for the trailing twelve months (TTM) ended in Jul. 2014 was $7,978 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.

Best Buy Co Inc Selling, General, & Admin. Expense for the trailing twelve months (TTM) ended in Jul. 2014 was 2048 (Oct. 2013 ) + 2298 (Jan. 2014 ) + 1820 (Apr. 2014 ) + 1812 (Jul. 2014 ) = $7,978 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.

Best Buy Co Inc Annual Data

Feb04Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Jan14
SG&A 4,5675,0536,0826,7707,3858,9849,87310,32510,2428,391

Best Buy Co Inc Quarterly Data

Feb12Apr12Jul12Oct12Apr13Jul13Oct13Jan14Apr14Jul14
SG&A 2,5592,5182,4402,1921,9842,0382,0482,2981,8201,812
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