Selling, General & Administrative Expenses (SG&A)

Benzinga  Mar 29  Comment 
Piper Jaffray’s Neely J.N. Tamminga reiterated an Overweight rating on J C Penney Company Inc (NYSE: JCP), with a price target of $20. Following a tour with CFO Ed Record and IT Trent Kruse, Tamminga named the stock Piper Jaffray’s Top...
Forbes  Feb 22  Comment 
Sprint’s adjusted EBITDA jumped 82% y-o-y during Q4 CY’15, despite falling revenues. While this was partly driven by lower SG&A expenses, much of the growth came from an increasing take rate for the company’s device leasing program. Under...
Benzinga  Sep 17  Comment 
Morgan Stanley says heavy investment may limit EBIT margin in near-term but will be offer strong return potential in the longer-term. Stays Equal-weight Latest Ratings for UA Date Firm Action From To Aug 2015 Atlantic...  May 13  Comment 
LONDON (dpa-AFX) - Wood Group (John) plc (WDGJF.PK, WG.L) said it is confident that it can deliver SG&A cost reductions of over $30 million in 2015 and anticipate that full year EBITA will be broadly in line with analyst consensus. Looking further...  Apr 30  Comment 
BEIJING (dpa-AFX) - Orient Paper Inc. (ONP) reported first-quarter net income of $2.1 million or $0.10 per share, compared to $2.5 million or $0.14 per share, prior year. The company said its net income decreased 16.0% YoY due to increased SG&A...
Forbes  Feb 6  Comment 
Though Groupon is trying to reduce losses in the international region by standardizing its best practices globally, we are skeptical that this could result in large-scale improvement in its profitability from the region. Margins within North...
Forbes  Nov 20  Comment 
Based on these results, we have updated our outlook for both the top-line and bottom-line, as well. We expect Groupon’s EBITDA margins to show improvement in the coming years as operating leverage should lead to decline in marketing and SG&A...  Nov 12  Comment 
WASHINGTON (dpa-AFX) - Macy's, Inc. (M) Wednesday reported third-quarter earnings which increased, as a decline in SG&A costs masked lower sales. Earnings also topped analysts' estimates, while sales fell short. The company, however,...  Nov 12  Comment 
OTTAWA (dpa-AFX) - Loblaw Companies Ltd. (L.TO) Wednesday reported lower profit for the third quarter, as the rise in revenues was offset by higher SG&A expenses. Net earnings declined to C$142 million or C$0.34 per share from C$150 million...
Benzinga  Nov 7  Comment 
The graphs below were produced by Capital Market Labs. Kandi Technologies Group Inc (NASDAQ: KNDI) has booming revenue, collapsing earnings and a huge price-to-sales ratio. In short, when earnings come out, Kandi must show increasing revenue...


Selling, General & Administrative Expenses is the sum of all selling expenses and all general and administrative expenses

Selling, General & Administrative Expenses (alternately SG&A) is an income statement item that refers to a company's operating expenses outside of cost of sales.

Items commonly included in SG&A are not directly attributable to production. Examples of SG&A include employee salaries, commission bonuses, pension costs, marketing costs, insurance, rent and utilities, and maintenance.

While cost of sales are easily controlled, SG&A expenses are more difficult to manipulate. A company can keep its cost of sales down by limiting raw material purchase and adjusting its manufacture/service-production during a given accounting period. SG&A expenses are oftentimes fixed recurring expenses, and thus not as easily adjustable (i.e. payroll expense).

Investors look to SG&A as a measure of how efficiently a company is using its money. A company maintaining an SG&A that is a high percentage of revenue relative to other companies in its sub-industry would may indicate an inability to adapt to market downturns, as SG&A expenses are not easily changed in a short period of time (money being tied up in things like salary and office rent).

Unless a company is very research and development focused, SG&A expenses tend to be one of the largest of a company's operating expenses.


  • Company XYZ, a widget maker, reports net income of $2 million dollars with a $800 thousand cost of goods sold for a gross profit of $1.2 million. The company spends $200 thousand on research and development and $600 thousand on SG&A expenses. SG&A, then, is 30% of XYZ's total revenues (600 thousand / 2 million) and
  • Company ABC, also in the widget industry, the same year reports net income of $5 million dollars with a $1.5 million cost of goods sold for a gross profit of $3.5 million. The company spends $500 thousand on research and development and $2 million on SG&A expenses. SG&A, then, is 40% of ABC's total revenues (2 million / 5 million).
  • Despite XYZ's relatively higher cost of goods sold (40% of revenue vs 30%), all other things being equal an investor would likely view XYZ better suited to deal with a market downturn or other unforeseen negative stressor on the market, as it's relatively lower SG&A expenses equate to an easier reduction of total expenses should it be necessary, as it is harder for company to reduce SG&A expenses than others.
Please install Flash Player to view this chart.
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki