Switch to:
GuruFocus has detected 2 Warning Signs with TechnipFMC PLC $FTI.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
TechnipFMC PLC (NYSE:FTI)
Selling, General, & Admin. Expense
$605 Mil (TTM As of Sep. 2016)

Selling, general, & admin. expense (SGA) includes the direct and indirect costs and all general and administrative expenses of a company. TechnipFMC PLC's selling, general, & admin. expense for the three months ended in Sep. 2016 was $141 Mil. Its selling, general, & admin. expense for the trailing twelve months (TTM) ended in Sep. 2016 was $605 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.

TechnipFMC PLC Selling, General, & Admin. Expense for the trailing twelve months (TTM) ended in Sep. 2016 was 158.731 (Dec. 2015 ) + 154.699 (Mar. 2016 ) + 150.833 (Jun. 2016 ) + 140.908 (Sep. 2016 ) = $605 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.

TechnipFMC PLC Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
SG&A 5135706046386789149867846760

TechnipFMC PLC Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
SG&A 190180164177170159155151141-446
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)
FEEDBACK