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GuruFocus has detected 5 Warning Signs with Nu Skin Enterprises Inc $NUS.
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Nu Skin Enterprises Inc (NYSE:NUS)
Selling, General, & Admin. Expense
$1,476 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. Nu Skin Enterprises Inc's selling, general, & admin. expense for the three months ended in Dec. 2016 was $362 Mil. Its selling, general, & admin. expense for the trailing twelve months (TTM) ended in Dec. 2016 was $1,476 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.

Nu Skin Enterprises Inc Selling, General, & Admin. Expense for the trailing twelve months (TTM) ended in Dec. 2016 was 325.813 (Mar. 2016 ) + 392.472 (Jun. 2016 ) + 395.925 (Sep. 2016 ) + 362.026 (Dec. 2016 ) = $1,476 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.

Nu Skin Enterprises Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
SG&A 8588949291,0481,1631,4382,1171,7391,5131,476

Nu Skin Enterprises Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
SG&A 425412370378376389326392396362
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