14-02-2015, 01:26 PM
14-02-2015, 09:46 PM
Something to ponder in Valentine night :
For 80 billion revenue, 8 billion administrative expenses are too much ?
For 80 billion revenue, 8 billion administrative expenses are too much ?
14-02-2015, 11:31 PM
As the most efficient and effective investment holding, Warren Buffett's company with 140B revenue, the administration charge is about 12B, it is not too much different. How you come out with the conclusion of too much?
15-02-2015, 10:25 AM
(14-02-2015, 11:31 PM)Fish Head Wrote: [ -> ]As the most efficient and effective investment holding, Warren Buffett's company with 140B revenue, the administration charge is about 12B, it is not too much different. How you come out with the conclusion of too much?
The administrative charge is a consolidated figure of all the companies under the Group's control. So for Temasek, it includes SingTel (which contributed $4B of Selling & Administrative costs in FY09 out of Temasek's $8B Admin & $5B Selling Expenses).
If other entities such as Mapletree, Singapore Power, Mediacorp, NOL, SMRT, SIA, ST Eng which Temasek owns a controlling stake are included, the total admin expenses should be reasonable.
Generally, such expenses increase due to complexity of the group structure, which requires more layers of bureaucracy within the group.