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Monday, June 13, 2011

SG&A to Sales Ratio

Definition: SG&A to Sales is the ratio of selling, general and administrative costs to sales. Selling, general, and administrative (SG&A) expenses represent most operating expenses including marketing costs, employee salaries, pension costs, insurance, etc.

Formula:

SG&A to Sales Ratio = (Selling, General & Administrative Expenses) / (Sales)

Example:
CPM Ltd has the following data:
Sales

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