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Brocade Communications Systems Inc (NAS:BRCD)
Selling, General, & Admin. Expense
$752 Mil (TTM As of Jul. 2016)

Selling, general, & admin. expense (SGA) includes the direct and indirect costs and all general and administrative expenses of a company. Brocade Communications Systems Inc's selling, general, & admin. expense for the six months ended in Jul. 2016 was $201 Mil. Its selling, general, & admin. expense for the trailing twelve months (TTM) ended in Jul. 2016 was $752 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.

For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Brocade Communications Systems Inc Selling, General, & Admin. Expense for the trailing twelve months (TTM) ended in Jul. 2016 was $752 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.

Brocade Communications Systems Inc Annual Data

Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14Oct15Oct16
SG&A 304381494602678683642639673752

Brocade Communications Systems Inc Semi-Annual Data

Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16
SG&A 159167165164165179174172201205
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