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Darden Restaurants Inc (NYSE:DRI)
Selling, General, & Admin. Expense
$593 Mil (TTM As of Aug. 2014)

Selling, general, & admin. expense (SGA) includes the direct and indirect costs and all general and administrative expenses of a company. Darden Restaurants Inc's selling, general, & admin. expense for the three months ended in Aug. 2014 was $160 Mil. Its selling, general, & admin. expense for the trailing twelve months (TTM) ended in Aug. 2014 was $593 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.

Darden Restaurants Inc Selling, General, & Admin. Expense for the trailing twelve months (TTM) ended in Aug. 2014 was 221.1 (Nov. 2013 ) + 209.3 (Feb. 2014 ) + 3 (May. 2014 ) + 160 (Aug. 2014 ) = $593 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.

Darden Restaurants Inc Annual Data

May05May06May07May08May09May10May11May12May13May14
SG&A 497506537642666685743747625664

Darden Restaurants Inc Quarterly Data

May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14
SG&A 179218216200-91662212093160
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