Broadcom Inc. or Telefonaktiebolaget LM Ericsson (publ): Who Manages SG&A Costs Better?

Who Manages SG&A Costs Better: Broadcom Inc. or Ericsson?

In the competitive landscape of global telecommunications, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Broadcom Inc. and Telefonaktiebolaget LM Ericsson (publ) have been at the forefront of this challenge since 2014. Over the past decade, Broadcom has demonstrated a remarkable ability to control its SG&A costs, with expenses averaging around $1.5 billion annually. In contrast, Ericsson's SG&A expenses have been significantly higher, averaging nearly $30 billion per year.

Broadcom's strategic cost management is evident in its 2023 SG&A expenses, which were approximately 5% of Ericsson's. This stark difference highlights Broadcom's efficiency in managing operational costs, a critical factor in its competitive edge. However, it's important to note that data for 2024 is incomplete, with Ericsson's figures missing, which could impact future comparisons.