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 Aug. 2017 was \$697 Mil. Its selling, general, & admin. expense for the trailing twelve months (TTM) ended in Aug. 2017 was \$2,723 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 620.84 644.74 671.11 710.03 697.50

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 Aug. 2017 was 644.742 (Nov. 2016 ) + 671.105 (Feb. 2017 ) + 710.027 (May. 2017 ) + 697.495 (Aug. 2017 ) = \$2,723 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

From the Internet

###### Honeywell (HON) Beats on Q3 Earnings & Revenues, Guides Well

- Zacks 2017-10-20 09:49:00

###### 4 Top Liquid Stocks to Buy for Stellar Returns

- Zacks 2017-10-20 09:07:00

- Zacks 2017-10-20 07:52:00

- Seekingalpha 2017-10-20 07:37:18

- Zacks 2017-10-20 06:06:00

- Seekingalpha 2017-10-20 04:34:52

- theStreet 2017-10-19 18:57:00

###### What Happened in the Stock Market Today

- Fool 2017-10-19 17:02:00

###### Why Adobe Systems Incorporated Stock Popped Today

- Fool 2017-10-19 16:49:00

###### Closing Bell: 10/19/17

- theStreet 2017-10-19 16:47:00

- Barron's 2017-10-19 16:15:00

###### S&P 500, Dow Reverse Losses to End at Records on Travelers, Adobe Gains

- theStreet 2017-10-19 16:10:00

###### Adobe stock soars to record high after projecting more strong growth

- MarketWatch 2017-10-19 15:23:00

###### SAP SE (SAP) Q3 Earnings Rise Y/Y, Revenues Top, View Up

- Zacks 2017-10-19 12:22:00

###### Adobe jumps more than 10% to record high after raising outlook

- MarketWatch 2017-10-19 12:06:00