Selling, General & Administrative Expenses (SG&A)
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.
A business's "gross margin" is a rough gauge of how profitable its operations are. It measures how much sales revenue the company retains after all of the direct costs associated with making a product or providing a service are accounted for. Direct costs refer to materials, labor and expenses related to producing a product.
Amount of profit realized from a business's operations after taking out operating expenses - such as cost of goods sold (COGS) or wages - and depreciation.
The income statement is a measurement of a company's financial performance over a specific period of time. Discover its main components and how they work together.
Learn more about the measurement used to calculate what proportion of a company's revenue is left over after production costs.
Otherwise known as the "bottom line", net income is the most commonly used indicator of a company's profitability. Learn more about how it an investor's decision to own or sell a stock.
Learn more about the costs that go into production.
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