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GuruFocus has detected 5 Warning Signs with Ball Corp $BLL.
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Ball Corp (NYSE:BLL)
Selling, General, & Admin. Expense
$512 Mil (TTM As of Dec. 2016)

Selling, general, & admin. expense (SGA) includes the direct and indirect costs and all general and administrative expenses of a company. Ball Corp's selling, general, & admin. expense for the three months ended in Dec. 2016 was $164 Mil. Its selling, general, & admin. expense for the trailing twelve months (TTM) ended in Dec. 2016 was $512 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.

Ball Corp Selling, General, & Admin. Expense for the trailing twelve months (TTM) ended in Dec. 2016 was 108 (Mar. 2016 ) + 105 (Jun. 2016 ) + 135 (Sep. 2016 ) + 164 (Dec. 2016 ) = $512 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

Ball Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
SG&A 324288309357381386419466450512

Ball Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
SG&A 123124116118107110108105135164
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