SGA to Revenue Ratio
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.
SGA to Revenue Ratio in Python
get_sga_to_revenue_ratio is part of 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.