To quantify the operational efficiency of the company, the revenue generated per dollar spent on sales, general and administrative (SG&A) expenses can be regarded as a key indicator. VMware has generated roughly $3 per dollar spent on SG&A expenses from 2011 through 2015. VMware’s management mentioned that the company aims to improve its operational efficiency by reducing operating expenses and headcount. VMware’s SG&A expenses could grow at an even slower rate to compensate for relatively low revenue growth as shown below. Additionally, the gross profit per unit SG&A could improve to $2.60 – a 10% improvement over 2014 levels as SG&A expenses to taper down.

Source: Forbes November 22, 2016 19:33 UTC