Question

Which company has the most efficient SG&A / Sales ratio? Select: 1 Chester Baldwin Digby Andrews...


Which company has the most efficient SG&A / Sales ratio?
Select: 1
Chester
Baldwin
Digby
Andrews
Andrews Baldwin Chester Digby
ROS -31.2% 7.7% 19.1% 7.7%
Asset Turnover 0.52 0.88 1.49 0.79
ROA -16.3% 6.8% 28.4% 6.1%
Leverage (Assets/Equity) -7.3 2.2 1.7 2.4
ROE -119.1% 14.7% 47.0% 14.4%
Emergency Loan $121,073,473 $0 $0 $0
Sales $63,535,062 $230,077,203 $302,887,364 $178,353,243
EBIT ($5,706,315) $44,857,896 $98,547,242 $37,673,904
Profits ($19,854,669) $17,777,592 $57,844,708 $13,692,338
Cumulative Profit ($32,070,832) $28,862,742 $121,458,373 $20,172,120
SG&A / Sales 34.3% 9.5% 4.8% 8.8%
Contrib. Margin % 35.7% 39.2% 43.0% 42.4%

Homework Answers

Answer #1

SG&A ratio / sales ratio - It tells us what percent of every dollar your company earned gets used up by SG&A costs.

if the sg&a ratio is 26 % it means that for every $ we earned , we have 26% gets spent on selling , general and admin costs.

andrews sg&a ratios is 34.3 %

baldwin sg&a ratio is 9.5%

chester sg&a ratio is 4.8%

digby sg&a ratio is 8.8%

so we can conclude that most efficient sg&a ratio is of chester since it is the lowest amongst all of them.

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