The Selling, general & admin expenses ratio is a financial metric that measures the proportion of a company's total revenue spent on selling, general, and administrative (SG&A) expenses, excluding research and development (R&D) costs.

SG&A Expenses Ratio = SG&A Expenses (excluding R&D) / Total revenue

By excluding R&D expenses, this ratio focuses on the company's core operational efficiency and ability to manage its day-to-day expenses.

The Selling, general & admin expenses ratio is important because it provides insight into a company's cost structure and ability to maintain profitability. A lower SG&A expenses ratio indicates that a company is able to maintain its revenue while keeping operational expenses under control, which can lead to higher profitability. Investors can use this metric to compare companies within the same industry and identify those with efficient cost management.