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GuruFocus has detected 5 Warning Signs with Brown-Forman Corp $BF.B.
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Brown-Forman Corp (NYSE:BF.B)
Selling, General, & Admin. Expense
$1,050 Mil (TTM As of Apr. 2017)

Selling, general, & admin. expense (SGA) includes the direct and indirect costs and all general and administrative expenses of a company. Brown-Forman Corp's selling, general, & admin. expense for the three months ended in Apr. 2017 was $271 Mil. Its selling, general, & admin. expense for the trailing twelve months (TTM) ended in Apr. 2017 was $1,050 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.

Brown-Forman Corp Selling, General, & Admin. Expense for the trailing twelve months (TTM) ended in Apr. 2017 was 245 (Jul. 2016 ) + 270 (Oct. 2016 ) + 264 (Jan. 2017 ) + 271 (Apr. 2017 ) = $1,050 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

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 local exchange's currency.

Brown-Forman Corp Annual Data

Apr08Apr09Apr10Apr11Apr12Apr13Apr14Apr15Apr16Apr17
SG&A 1,0079318899401,0051,0581,1221,1341,1051,050

Brown-Forman Corp Quarterly Data

Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17Apr17
SG&A 275288264286274281245270264271
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