Sales expense ratio
factor.formula
Sales Fees in the Last 12 Months (TTM)
Last 12 Months Operating Income (TTM)
Sales expense ratio
The formula calculates the rolling sales expense rate for the last 12 months.
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It indicates the total amount of sales expenses in the last 12 months (rolling). Sales expenses include various expenses incurred by the enterprise in the process of selling goods or providing services, such as advertising fees, transportation fees, sales staff wages, etc.
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It indicates the total operating income of the last 12 months (rolling), reflecting the total income obtained by the company through its main business activities during the reporting period. TTM (Trailing Twelve Months) means rolling 12 months. Using rolling data can more smoothly reflect the company's operating conditions and reduce the impact of seasonal fluctuations.
factor.explanation
The sales expense ratio reflects the level of sales expenses invested by an enterprise to achieve a certain sales revenue. The lower the ratio, the more effective the cost control of the enterprise in the sales process, the higher the efficiency of resource utilization, and the stronger the profitability. However, it is not absolute. A too low sales expense ratio may also indicate that the enterprise has insufficient investment in marketing and brand building, which may affect its market share and competitiveness in the long run. Therefore, when analyzing the sales expense ratio, it is necessary to conduct a comprehensive assessment based on industry characteristics, enterprise development stage and other financial indicators. This factor can be used as one of the important reference indicators for measuring the profitability and cost control capabilities of an enterprise.