>

Arthur Selling General and Administrative Expense vs Operating Income Analysis

<div class='circular--portrait' style='background:#FCD202;color: white;font-size:3em;padding-top: 40px;;'>AJG</div>
AJG -- USA Stock  

Fiscal Quarter End: March 31, 2020  

Arthur J financial indicator trend analysis is way more than just evaluating Arthur J Gallagher prevailing accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Arthur J Gallagher is a good investment. Please check the relationship between Arthur J Selling General and Administrative Expense and its Operating Income accounts. Please continue to Trending Equities.

Selling General and Administrative Expense vs Operating Income

Accounts Relationship

Selling General and Administrative Expense vs Operating Income

Significance: Almost Identical Trend

Selling General and Administrative Expense diversification synergy
Overlapping area represents amount of trend that can be explained by analyzing historical patterns of Arthur J Gallagher Selling General and Administrative Expense account and Operating Income

Correlation Coefficient

0.96
Relationship DirectionPositive 
Relationship StrengthVery Strong

Selling General and Administrative Expense

A component of operating expenses representing the aggregate total costs related to selling a firm's product and services; as well as all other general and administrative expenses. direct selling expenses (for example; credit; warranty; and advertising) are expenses that can be directly linked to the sale of specific products. indirect selling expenses are expenses that cannot be directly linked to the sale of specific products; for example telephone expenses; internet; and postal charges. general and administrative expenses include salaries of non-sales personnel; rent; utilities; communication; etc.

Operating Income

Operating income is the amount of profit realized from arthur j gallagher operations after accounting for operating expenses such as cost of goods sold (cogs), wages and depreciation. operating income takes the gross income and subtracts other operating expenses and then removes depreciation. operating income of arthur j gallagher co is typically a synonym for earnings before interest and taxes (ebit) and is also commonly referred to as operating profit or recurring profit. operating income is a measure of financial performance before the deduction of interest expense; income tax expense and other non-operating items. it is calculated as gross profit minus operating expenses.