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GuruFocus has detected 6 Warning Signs with Conagra Brands Inc $CAG.
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Conagra Brands Inc (NYSE:CAG)
Selling, General, & Admin. Expense
$1,979 Mil (TTM As of Nov. 2016)

Selling, general, & admin. expense (SGA) includes the direct and indirect costs and all general and administrative expenses of a company. Conagra Brands Inc's selling, general, & admin. expense for the three months ended in Nov. 2016 was $418 Mil. Its selling, general, & admin. expense for the trailing twelve months (TTM) ended in Nov. 2016 was $1,979 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.

Conagra Brands Inc Selling, General, & Admin. Expense for the trailing twelve months (TTM) ended in Nov. 2016 was 489.6 (Feb. 2016 ) + 789.7 (May. 2016 ) + 281.5 (Aug. 2016 ) + 417.9 (Nov. 2016 ) = $1,979 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.

Conagra Brands Inc Annual Data

May07May08May09May10May11May12May13May14May15May16
SG&A 1,7741,7641,6841,8191,4991,9802,0661,7791,5452,209

Conagra Brands Inc Quarterly Data

Aug14Nov14Feb15May15Aug15Nov15Feb16May16Aug16Nov16
SG&A 394733360399405483490790282418
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