Switch to:

Selling, general, & admin. expense (SGA) includes the direct and indirect costs and all general and administrative expenses of a company. Adobe Systems Inc's selling, general, & admin. expense for the three months ended in May. 2017 was \$710 Mil. Its selling, general, & admin. expense for the trailing twelve months (TTM) ended in May. 2017 was \$2,646 Mil.

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

 Nov07 Nov08 Nov09 Nov10 Nov11 Nov12 Nov13 Nov14 Nov15 Nov16 Selling, General, & Admin. Expense 1,951.14 2,140.58 2,195.64 2,215.16 2,487.91

 Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17 Selling, General, & Admin. Expense 621.18 643.52 671.11 710.03 697.50

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.

Calculation

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.

Selling, General, & Admin. Expense for the trailing twelve months (TTM) ended in May. 2017 was 621.177 (Aug. 2016 ) + 643.519 (Nov. 2016 ) + 671.105 (Feb. 2017 ) + 710.027 (May. 2017 ) = \$2,646 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