If Sales to Administrative Expenses increases over time:
An increasing Sales to Administrative Expenses ratio is generally a positive sign, showing the company is more able to generate sales using its general and administrative expenses.
If Sales to Administrative Expenses decreases over time:
A decreasing Sales to Administrative Expenses ratio is generally a negative sign, showing the company is less able to generate sales using its general and administrative expenses.
If Sales to Administrative Expenses stays the same over time:
An unchanged Sales to Administrative Expenses ratio indicates the ability of the company to use its general and administrative expenses to generate sales has remained the same.