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Hormel Foods Corp (NYSE:HRL)
Selling, General, & Admin. Expense
$632 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. Hormel Foods Corp's selling, general, & admin. expense for the three months ended in Jul. 2014 was $153 Mil. Its selling, general, & admin. expense for the trailing twelve months (TTM) ended in Jul. 2014 was $632 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.

Hormel Foods Corp Selling, General, & Admin. Expense for the trailing twelve months (TTM) ended in Jul. 2014 was 147.444 (Oct. 2013 ) + 166.189 (Jan. 2014 ) + 165.785 (Apr. 2014 ) + 153.035 (Jul. 2014 ) = $632 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.

Hormel Foods Corp Annual Data

Oct04Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13
SG&A 768864937934553567605619606627

Hormel Foods Corp Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
SG&A 149145160156173151147166166153
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