SG&A to Revenue

SG&A to Revenue is a ratio that compares a company's Sales, General, and Administrative Expenses to its total revenue. SG&A to Revenue can be used to measure the efficiency of a company's cost management. SG&A expenses include costs such as salaries, marketing expenses, rent, utilities, office supplies, and other operational expenses that are not directly tied to the production of goods or services. By comparing these expenses to total revenue, the ratio helps assess how effectively a company is managing its overhead costs in relation to its sales. A lower SG&A to Revenue ratio typically indicates better cost management, however, it is important to note that ratios can vary widely between industries and the ratio is often compared among companies in one industry.

SGA to Revenue = (Selling, General, and Administrative Expenses / Total Revenue) * 100