Calculate the sales, general, and administrative (SG&A) expenses to revenue ratio, which measures the SG&A expenses relative to the revenue of the company.

The SG&A to revenue ratio is calculated by dividing the total SG&A expenses by the company’s revenue and then multiplying by 100 to express it as a percentage. It provides insight into the efficiency of a company’s cost management and its ability to control its overhead costs.

The formula is as follows:

\[\text{SG\&A} \text{to Revenue Ratio} = \text{SG\&A} \text{Expenses} / \text{Revenue}\]

Also known as: SG&A ratio, selling general administrative ratio.

No programming experience? With the Finance Toolkit MCP server, AI assistants such as Claude and ChatGPT can calculate the SGA to Revenue Ratio for you. Just ask in plain English.

Calculate the SGA to Revenue Ratio in Python

The SGA to Revenue Ratio is available in the Ratios module of the open-source Finance Toolkit. Install it with:

pip install financetoolkit -U

Then call get_sga_to_revenue_ratio as shown below.

from financetoolkit import Toolkit

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

sga_to_revenue_ratios = toolkit.ratios.get_sga_to_revenue_ratio()

Which returns:

  2021 2022 2023 2024 2025
AAPL 0.0601 0.0636 0.065 0.0667 0.0663
TSLA 0.0839 0.0484 0.0496 0.0527 0.0615

Parameters

get_sga_to_revenue_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.
Operating Cycle Accounts Payables Turnover Ratio Days of Accounts Payable Outstanding Cash Conversion Cycle Cash Conversion Efficiency Receivables Turnover Fixed Asset Turnover Operating Ratio Research and Development Ratio Selling and Marketing Ratio General and Administrative Ratio Stock-Based Compensation Ratio

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

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