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. Investing

    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.
  2. Insights

    Kraft Continues to Aim for Lean & Mean (KHC)

    Cost-cutting measures proceed on multiyear plan, but not everyone is impressed when they look at the company's portfolio mix.
  3. Investing

    Understanding Profit Metrics: Gross, Operating and Net Profits

    Rather than relying solely on net profit figures to evaluate a company's performance, seasoned investors will often look at gross profit and operating profit as well.
  4. Investing

    Analyzing Operating Margins

    Find out how to put this important component of equity analysis to work for you.
  5. Investing

    Lowe's Gets Nailed In The Race Against Home Depot

    Poor expense controls hammered Lowe's profits as Home Depot shined
  6. Investing

    Nike Stock: An Earnings Case Study (NKE)

    Analyze Nike's historical earnings to determine which factors are driving profit. Assess income performance and consensus analyst outlook for Nike.
  7. Investing

    Ford Stock: An Earnings Case Study (F)

    Analyze Ford Motor's earnings history and outlook. Explore the revenue and expense trends that have heavily influenced profits in recent periods.
  8. Investing

    3 Single Equity Manager Funds of American Beacon!

    Discover American Beacon's Top Three Single Equity Manager Mutual Funds with a complete summary of each manager and performance numbers for each fund.
Hot Definitions
  1. SEC Form 13F

    A filing with the Securities and Exchange Commission (SEC), also known as the Information Required of Institutional Investment ...
  2. Quantitative Easing

    An unconventional monetary policy in which a central bank purchases private sector financial assets in order to lower interest ...
  3. Risk Averse

    A description of an investor who, when faced with two investments with a similar expected return (but different risks), will ...
  4. Indirect Tax

    A tax that increases the price of a good so that consumers are actually paying the tax by paying more for the products. An ...
  5. Zero-Sum Game

    A situation in which one person’s gain is equivalent to another’s loss, so that the net change in wealth or benefit is zero. ...
  6. Beta

    Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. ...
Trading Center