Selling and Marketing Ratio

Calculate the selling and marketing (S&M) expenses to revenue ratio, an efficiency ratio that measures the proportion of revenue spent on selling and marketing activities.

This ratio isolates the selling and marketing component of the combined SG&A expense line (see get_sga_to_revenue_ratio), which is useful for comparing customer-acquisition efficiency independently of administrative overhead.

The formula is as follows:

Also known as: S&M ratio, sales and marketing intensity.

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Calculate the Selling and Marketing Ratio in Python

The Selling and Marketing Ratio is available in the Ratios module of the open-source Finance Toolkit. Install it with:

pip install financetoolkit -U

Then call get_selling_and_marketing_ratio as shown below.

from financetoolkit import Toolkit

toolkit = Toolkit(["AAPL", "TSLA"], api_key="FINANCIAL_MODELING_PREP_KEY")

sm_ratios = toolkit.ratios.get_selling_and_marketing_ratio()

Which returns:

Parameters

get_selling_and_marketing_ratio accepts the following parameters:

• rounding (int, optional): The number of decimals to round the results to. Defaults to 4.
• growth (bool, optional): Whether to calculate the growth of the ratios. Defaults to False.
• lag (int | str, optional): The lag to use for the growth calculation. Defaults to 1.
• standardize (bool, optional): Whether to standardize (Z-Score) the result. When combined with growth=True, standardizes the growth values instead of the raw values. Defaults to False.
• trailing (int): Defines whether to select a trailing period. E.g. when selecting 4 with quarterly data, the TTM is calculated.

Related Efficiency Ratios

The Ratios module page introduces the module, and the sidebar lists all of its functions.