Arista Networks, Inc. or Microchip Technology Incorporated: Who Manages SG&A Costs Better?

Who Manages SG&A Costs Better: Arista Networks or Microchip Technology?

In the competitive landscape of technology companies, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. From 2014 to 2023, Arista Networks and Microchip Technology have shown distinct approaches to handling these costs. Arista Networks, with a steady increase in SG&A expenses, saw a rise from approximately $118 million in 2014 to $518 million in 2023, reflecting a growth of over 300%. Meanwhile, Microchip Technology's SG&A expenses surged from around $267 million to nearly $798 million in the same period, marking a 200% increase. Despite the higher absolute numbers, Microchip's growth rate in SG&A expenses is relatively lower, indicating potentially better cost management. However, the absence of data for Arista Networks in 2024 leaves room for speculation on future trends. As these tech giants continue to evolve, their strategies in managing operational costs will be pivotal in shaping their financial health.