What Does the Ratio Selling, General, & Administrative (SG&A)/Revenue Indicate

question 18

Essay

What does the ratio Selling, general, & administrative (SG&A)/Revenue indicate?

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Definitions:

Percentage

A mathematical concept that represents a fraction of 100, commonly used to quantify the relative size of one quantity as a fraction of another.

Strict Residual Dividend

A dividend policy under which dividends are paid from the residual or leftover equity only after all project capital needs are met, prioritizing investment over dividends.

Stable Pattern

A stable pattern indicates consistent and predictable behavior or trends over a period of time.

Dividends Over Time

The cumulative dividends paid out by a corporation to its shareholders over a period, reflecting the company's profitability and policy on profit distribution.