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JC Penney Co Inc (NYSE:JCP)
Selling, General, & Admin. Expense
$3,792 Mil (TTM As of Oct. 2016)

Selling, general, & admin. expense (SGA) includes the direct and indirect costs and all general and administrative expenses of a company. JC Penney Co Inc's selling, general, & admin. expense for the three months ended in Oct. 2016 was $889 Mil. Its selling, general, & admin. expense for the trailing twelve months (TTM) ended in Oct. 2016 was $3,792 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.

JC Penney Co Inc Selling, General, & Admin. Expense for the trailing twelve months (TTM) ended in Oct. 2016 was 1176 (Jan. 2016 ) + 872 (Apr. 2016 ) + 855 (Jul. 2016 ) + 889 (Oct. 2016 ) = $3,792 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.

JC Penney Co Inc Annual Data

Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16
SG&A 5,5485,4035,3365,7475,6135,2304,8594,0733,9453,937

JC Penney Co Inc Quarterly Data

Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16
SG&A 9669899809658859301,176872855889
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