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GuruFocus has detected 6 Warning Signs with Micron Technology Inc $MU.
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Micron Technology Inc (NAS:MU)
Selling, General, & Admin. Expense
$651 Mil (TTM As of Feb. 2017)

Selling, general, & admin. expense (SGA) includes the direct and indirect costs and all general and administrative expenses of a company. Micron Technology Inc's selling, general, & admin. expense for the three months ended in Feb. 2017 was $187 Mil. Its selling, general, & admin. expense for the trailing twelve months (TTM) ended in Feb. 2017 was $651 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.

Micron Technology Inc Selling, General, & Admin. Expense for the trailing twelve months (TTM) ended in Feb. 2017 was 148 (May. 2016 ) + 157 (Aug. 2016 ) + 159 (Nov. 2016 ) + 187 (Feb. 2017 ) = $651 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.

Micron Technology Inc Annual Data

Aug07Aug08Aug09Aug10Aug11Aug12Aug13Aug14Aug15Aug16
SG&A 610455354528592620562707719659

Micron Technology Inc Quarterly Data

Nov14Feb15May15Aug15Nov15Feb16May16Aug16Nov16Feb17
SG&A 193187169170179175148157159187
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