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Valspar Corporation (NYSE:VAL)
Selling, General, & Admin. Expense
$745 Mil (TTM As of Jan. 2014)

Selling, general, & admin. expense (SGA) includes the direct and indirect costs and all general and administrative expenses of a company. Valspar Corporation's selling, general, & admin. expense for the three months ended in Jan. 2014 was $187 Mil. Its selling, general, & admin. expense for the trailing twelve months (TTM) ended in Jan. 2014 was $745 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.

Valspar Corporation Selling, General, & Admin. Expense for the trailing twelve months (TTM) ended in Jan. 2014 was 173.183 (Apr. 2013 ) + 182.118 (Jul. 2013 ) + 202.487 (Oct. 2013 ) + 187.235 (Jan. 2014 ) = $745 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.

Valspar Corporation Annual Data

Oct04Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13
SG&A 393431511566580597595747745728

Valspar Corporation Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
SG&A 210176193189189170173182202187
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