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Pep Boys - Manny Moe & Jack (NYSE:PBY)
Selling, General, & Admin. Expense
$474 Mil (TTM As of Apr. 2014)

Selling, general, & admin. expense (SGA) includes the direct and indirect costs and all general and administrative expenses of a company. Pep Boys - Manny Moe & Jack's selling, general, & admin. expense for the three months ended in Apr. 2014 was $127 Mil. Its selling, general, & admin. expense for the trailing twelve months (TTM) ended in Apr. 2014 was $474 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.

Pep Boys - Manny Moe & Jack Selling, General, & Admin. Expense for the trailing twelve months (TTM) ended in Apr. 2014 was 120.929 (Jul. 2013 ) + 115.104 (Oct. 2013 ) + 110.616 (Jan. 2014 ) + 127.071 (Apr. 2014 ) = $474 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.

Pep Boys - Manny Moe & Jack Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
SG&A 547520546518485430442444481465

Pep Boys - Manny Moe & Jack Quarterly Data

Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14
SG&A 112120114112135118121115111127
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