“The ratio of G&A to total expenses is the easiest measure of waste to find in 60 seconds or less. Since these expenses don’t directly generate a profit or grow the company, we want to see them kept low. When they’re higher than what most companies spend, it’s a red flag. That’s the theory. Simple enough—but what’s a good G&A ratio? We randomly selected 523 exploration and development companies operating in diverse jurisdictions and examined their expenses from the second quarter of 2013. The following chart shows the percentage that G&A expenses comprise of total operating expenses.”
http://www.caseyresearch.com/cdd/easy-test-to-separate-winners-from-wasters
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