Definition SG&A - What does SG&A mean

S

silentrunning

I have looked through the forum and can't find SG&A. This is for a quote. One line has "SG&A / Profit =". I am at a loss here.

Doug
 

bobdoering

Stop X-bar/R Madness!!
Trusted Information Resource
Investopedia explains:
Selling, General & Administrative Expense - SG&A...
High SG&A expenses can be a serious problem for almost any business. Examining this figure as a percentage of sales or net income compared to other companies in the same industry can give some idea of whether management is spending efficiently or wasting valuable cash flow. For example, in the television industry businesses that depend on a great deal of advertising must carefully monitor their marketing expenses. A good management team will often attempt to keep SG&A expenses under tight control and limited to a certain percentage of revenue by reducing corporate overhead (i.e. cost-cutting, employee lay-offs).

http://www.investopedia.com/terms/s/sga.asp
 

Ajit Basrur

Leader
Admin
Yes, bobdoering has given a great link.


SG & A is a tool to analyse an Income Statement.

SG & A expenses consist of the combined payroll costs (salaries, commissions, and travel expenses of executives, sales people and employees), and advertising expenses a company incurs. High SGA expenses can be a serious problem for almost any business. A good management will often attempt to keep SGA expenses limited to a certain percentage of revenue. This can be accomplished through cost-cutting initiatives and employee lay-offs.

More at http://beginnersinvest.about.com/cs/investinglessons/l/blsga.htm
 
Top Bottom