Annual Comparison of SG&A Expense Ratios for Leading Pharmaceutical Giants

A Historical Perspective on SG&A Expense Ratios

The Sales, General, and Administrative (SG&A) expense ratio is a critical metric for evaluating the operational efficiency of companies. This article delves into the annual SG&A expense ratios of three pharmaceutical giants: AstraZeneca (AZN), Pfizer (PFE), and GlaxoSmithKline (GSK), spanning from 1985 to 2008.

Key Insights and Trends

AstraZeneca (AZN)

AstraZeneca's SG&A expense ratio has shown significant fluctuations over the years. Notably, in 2004, the ratio peaked at approximately 38.6%, indicating a substantial portion of revenue being allocated to operational expenses. However, the early 2000s saw a consistent rise, with the ratio hovering around 35% to 37%.

Pfizer (PFE)

Pfizer's SG&A expense ratio has been relatively volatile. The highest recorded ratio was around 67.5% in 1994, a stark contrast to the negative values observed in 2003 and 2008. This volatility suggests varying operational strategies and cost management practices over the years.

GlaxoSmithKline (GSK)

GlaxoSmithKline has maintained a more stable SG&A expense ratio compared to its peers. The ratio consistently ranged between 28% to 35% in the early 2000s, reflecting a balanced approach to managing operational costs.

Conclusion

Understanding the SG&A expense ratios of these pharmaceutical giants provides valuable insights into their operational efficiencies and strategic priorities. While AstraZeneca and Pfizer have shown more variability, GlaxoSmithKline's steadier ratios highlight a more consistent cost management approach.