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Verizon: Comparing Selling, General, and Administrative Expenses

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AT&T’s selling, general, and administrative expenses

In 3Q15, AT&T’s (T) SG&A (selling, general, and administrative expenses) increased to $9.1 billion from $8.5 billion in 3Q14 and $8.0 billion in 3Q13. SG&A expenses comprised 23.9% of total revenues in 3Q15. In comparison, they comprised 28.9% and 31.1% of total revenues in 3Q13 and 3Q14, respectively.

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Verizon’s SG&A expenses

In 3Q15, Verizon’s (VZ) SG&A expenses decreased YoY (year-over year) as a percentage of revenues. SG&A expenses increased to $8.3 billion in 3Q15 from $8.27 billion in 3Q14 and $8.0 billion in 3Q13. SG&A expenses comprised 25.1% of total revenues in 3Q15. In comparison, they comprised 26.5% and 26.2% of total revenues in 3Q13 and 3Q14, respectively.

T-Mobile’s SG&A expenses

In 3Q15, T-Mobile’s (TMUS) SG&A expenses increased to $2.6 billion from $2.3 billion in 3Q14 and $1.9 billion in 3Q13. SG&A expenses comprised 33.4% of total revenues in 3Q15. In comparison, they comprised 28.9% and 31.1% of total revenues in 3Q13 and 3Q14, respectively.

SG&A expenses are a major component of service-oriented companies, affecting their profitability. Companies in this sector need to maintain operational efficiency to ensure long-term growth and profitability.

AT&T comprises 26.0% of the Vanguard Telecommunication Services ETF (VOX) and 14.3% of the iShares S&P Global Telecommunications ETF (IXP).

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