Switch to:
Esterline Technologies (NYSE:ESL)
Selling, General, & Admin. Expense
$364 Mil (TTM As of Apr. 2015)

Selling, general, & admin. expense (SGA) includes the direct and indirect costs and all general and administrative expenses of a company. Esterline Technologies's selling, general, & admin. expense for the three months ended in Apr. 2015 was $101 Mil. Its selling, general, & admin. expense for the trailing twelve months (TTM) ended in Apr. 2015 was $364 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.

Esterline Technologies Selling, General, & Admin. Expense for the trailing twelve months (TTM) ended in Apr. 2015 was 95.293 (Jul. 2014 ) + 74.29 (Oct. 2014 ) + 93.656 (Jan. 2015 ) + 100.742 (Apr. 2015 ) = $364 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.

Esterline Technologies Annual Data

Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14
SG&A 137152200239235258304383367364

Esterline Technologies Quarterly Data

Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15
SG&A 9998102688992957494101
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK