Calculating SG&A margin in the Colgate case study

Q:As I was adjusting the calculation for SG&A in cell G38 I got a different margin to subtract (0.0028) and I should get 0.0044 according to the solution spreadsheet. Could I please see the detailed calculation of 0.0044 margin.

A: Here is the calculation:

  • Pre-Tax Minority Interest 57.5
  • Pre-Tax Equity in Affiliates (3.4)
  • Net Impact on Expense $54.1
  • Expense as a % of sales   $54.1/12,237.7 = 0.0044 or 0.44%

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>