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Primus Guaranty Ltd  (OTCPK:PRSG) Selling, General, & Admin. Expense: \$6.53 Mil (TTM As of Dec. 2011)

Selling, general, & admin. expense (SGA) includes the direct and indirect costs and all general and administrative expenses of a company. Primus Guaranty Ltd's selling, general, & admin. expense for the three months ended in Dec. 2011 was \$1.39 Mil. Its selling, general, & admin. expense for the trailing twelve months (TTM) ended in Dec. 2011 was \$6.53 Mil.

Historical Data

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

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Primus Guaranty Ltd Annual Data

 Dec02 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Selling, General, & Admin. Expense 22.45 20.16 17.66 18.65 6.53

Primus Guaranty Ltd Quarterly Data

 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Selling, General, & Admin. Expense 5.49 2.12 1.57 1.44 1.39

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 Dec. 2011 was 2.122 (Mar. 2011 ) + 1.57 (Jun. 2011 ) + 1.443 (Sep. 2011 ) + 1.392 (Dec. 2011 ) = \$6.53 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.

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