Apple's Opex Efficiency
by Horace Dediu
asymco | Apple's R&D Efficiency.
Following up on R&D efficiency, we are measuring operational expenses for Apple.
Here is the chart showing how, as a percent of sales, R&D + SG&A have declined, though R&D has been more resilient holding fairly steady at 3 percent and SG&A dropping from about 11% to approximately 9%.
3 comments
M ·
What does SG&A stand for?
Asymco ·
Cost related to selling, overhead and administration. Includes advertising, promotion, management salaries and, the expenses for running the Apple stores.
JonathanU ·
SG&A = Selling, General and Administration.
Essentially any cost related to the business period that is not incorporated into COGS (Cost of Goods Sold); the line item before Gross Margin or Gross Profit. This encapsulates just the costs with the physical goods that are actually sold (ie for iPhone, chips, components etc.)
Ergo: Revenue/Turnover -Cost of Goods Sold =Gross Margin/Profit -Selling, General & Administration =Operating Income/Profit (aka EBIT - Earnings before Interest and Taxation)
Check any Income Statement for a further breakdown.
Jonathan