Switch to:
GuruFocus has detected 5 Warning Signs with International Game Technology PLC $IGT.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
International Game Technology PLC (NYSE:IGT)
Selling, General, & Admin. Expense
$948 Mil (TTM As of Dec. 2016)

Selling, general, & admin. expense (SGA) includes the direct and indirect costs and all general and administrative expenses of a company. International Game Technology PLC's selling, general, & admin. expense for the three months ended in Dec. 2016 was $238 Mil. Its selling, general, & admin. expense for the trailing twelve months (TTM) ended in Dec. 2016 was $948 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.

International Game Technology PLC Selling, General, & Admin. Expense for the trailing twelve months (TTM) ended in Dec. 2016 was 229 (Mar. 2016 ) + 239.198 (Jun. 2016 ) + 242.639 (Sep. 2016 ) + 237.577 (Dec. 2016 ) = $948 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.

International Game Technology PLC Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
SG&A 00614599637713402448845948

International Game Technology PLC Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
SG&A 105143107265227247229239243238
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