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Phillips 66 (NYSE:PSX)
Selling, General, & Admin. Expense
$2,841 Mil (TTM As of Sep. 2014)

Selling, general, & admin. expense (SGA) includes the direct and indirect costs and all general and administrative expenses of a company. Phillips 66's selling, general, & admin. expense for the three months ended in Sep. 2014 was $401 Mil. Its selling, general, & admin. expense for the trailing twelve months (TTM) ended in Sep. 2014 was $2,841 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.

Phillips 66 Selling, General, & Admin. Expense for the trailing twelve months (TTM) ended in Sep. 2014 was 1626 (Dec. 2013 ) + 402 (Mar. 2014 ) + 412 (Jun. 2014 ) + 401 (Sep. 2014 ) = $2,841 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.

Phillips 66 Annual Data

Dec09Dec10Dec11Dec12Dec13
SG&A 000001,3141,3841,4091,7225,684

Phillips 66 Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
SG&A 4804324613323741,3411,626402412401
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