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GuruFocus has detected 1 Warning Sign with Steelcase Inc $SCS.
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Steelcase Inc (NYSE:SCS)
Selling, General, & Admin. Expense
$826 Mil (TTM As of May. 2017)

Selling, general, & admin. expense (SGA) includes the direct and indirect costs and all general and administrative expenses of a company. Steelcase Inc's selling, general, & admin. expense for the three months ended in May. 2017 was $213 Mil. Its selling, general, & admin. expense for the trailing twelve months (TTM) ended in May. 2017 was $826 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.

Steelcase Inc Selling, General, & Admin. Expense for the trailing twelve months (TTM) ended in May. 2017 was 200.9 (Aug. 2016 ) + 207.5 (Nov. 2016 ) + 204.8 (Feb. 2017 ) + 212.9 (May. 2017 ) = $826 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.

Steelcase Inc Annual Data

Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15Feb16Feb17
SG&A 875843648661708727757768790809

Steelcase Inc Quarterly Data

Feb15May15Aug15Nov15Feb16May16Aug16Nov16Feb17May17
SG&A 190185200198207196201208205213
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