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Constellation Brands Inc. (NYSE:STZ)
Selling, General, & Admin. Expense
$896 Mil (TTM As of Feb. 2014)

Selling, general, & admin. expense (SGA) includes the direct and indirect costs and all general and administrative expenses of a company. Constellation Brands Inc.'s selling, general, & admin. expense for the three months ended in Feb. 2014 was $220 Mil. Its selling, general, & admin. expense for the trailing twelve months (TTM) ended in Feb. 2014 was $896 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.

Constellation Brands Inc. Selling, General, & Admin. Expense for the trailing twelve months (TTM) ended in Feb. 2014 was 186.5 (May. 2013 ) + 244.1 (Aug. 2013 ) + 245.9 (Nov. 2013 ) + 219.5 (Feb. 2014 ) = $896 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.

Constellation Brands Inc. Annual Data

Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14
SG&A 556612769807824683641522585895

Constellation Brands Inc. Quarterly Data

Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14
SG&A 122123144155152134187244246220
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