Selling, General & Administrative Expenses (SG&A)



Next video:
Loading the player...

Selling, general and administrative expenses, or SG&A, consist of the costs associated with selling a firm’s products and the costs incurred in running the firm’s daily business operations.

If the amount is high as a percentage of sales or as a percentage of net income compared to the amount similar restaurants are spending, the company might be spending too much money on SG&A.

Related Articles
  1. Markets

    Fundamental Analysis: The Income Statement

    By Ben McClureThe income statement is basically the first financial statement you will come across in an annual report or quarterly Securities And Exchange Commission (SEC) filing. It also contains ...
  2. Investing Basics

    What's a P&L Statement?

    A profit and loss statement, also called the income statement, is a financial statement that companies use to report their income and expenses for a quarter or a year.
  3. Active Trading

    Value Investing: Finding Value In Income Statements

    A company's income statement basically tells you how much money it has taken in and how much it has paid out over a year or a quarter. Looking at the annual income statement rather than a ...
  4. Professionals

    The Income Statement

    Income Statement
  5. Forecasting and Modeling Costs

    When we model costs, two important factors need to be taken into account: 1) Distinguish between fixed and variable costs. This is important because fixed and variable costs will not change the ...
  6. Fundamental Analysis

    Analyzing Operating Margins

    Find out how to put this important component of equity analysis to work for you.
  7. Professionals

    Income Statement Basics

    CFA Level 1 - Income Statement Basics. Learn how to construct a basic income statement. Defines the components of a multi-step income statement and provides example figures.
  8. Investing Basics

    Profit Metrics: Gross, Operating & Net Profits

    In addition to net profit, most analysts look at a company’s gross profit and operating profit to gauge performance.
  9. Professionals

    Operating Procedures for the Administrator

    FINRA/NASAA Series 63: Section 5 Operating Procedures for the Administrator. In this section administrative abilities and jurisdiction.
  10. Professionals

    Series 63 Exam State Securities Administrator

    Learn what you need to know about the state securities administrator to pass the Series 63 exam.

You May Also Like

Hot Definitions
  1. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  2. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  3. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  4. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  5. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  6. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
Trading Center