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Cisco Systems Inc (NAS:CSCO)
Selling, General, & Admin. Expense
$11,437 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. Cisco Systems Inc's selling, general, & admin. expense for the three months ended in Jul. 2014 was $2,981 Mil. Its selling, general, & admin. expense for the trailing twelve months (TTM) ended in Jul. 2014 was $11,437 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.

Cisco Systems Inc Selling, General, & Admin. Expense for the trailing twelve months (TTM) ended in Jul. 2014 was 2926 (Oct. 2013 ) + 2728 (Jan. 2014 ) + 2802 (Apr. 2014 ) + 2981 (Jul. 2014 ) = $11,437 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.

Cisco Systems Inc Annual Data

Jul05Jul06Jul07Jul08Jul09Jul10Jul11Jul12Jul13Jul14
SG&A 5,6807,2008,72810,0779,96810,71511,72011,96911,80211,437

Cisco Systems Inc Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
SG&A 2,9453,1282,9762,9712,9052,9502,9262,7282,8022,981
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