Max Fakhre

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You’ll often see a relationship between SG&A and gross margin—firms that are able to charge more for their goods (e.g., H-P) have to spend more on salespeople and marketing. You can get a feel for how efficient a firm is by looking at SG&A as a percentage of revenues—a lower percentage of operating expenses relative to sales generally means a tighter, more cost-effective firm.
The Five Rules for Successful Stock Investing: Morningstar's Guide to Building Wealth and Winning in the Market
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