Deere & Company and Pentair plc: SG&A Spending Patterns Compared

SG&A Spending Patterns: A Tale of Two Companies

In the world of corporate finance, understanding a company's spending patterns can reveal much about its strategic priorities. Deere & Company and Pentair plc, two giants in their respective industries, offer a fascinating study in contrasts when it comes to Selling, General, and Administrative (SG&A) expenses.

From 2014 to 2023, Deere & Company consistently allocated a significant portion of its budget to SG&A, with a notable increase of approximately 37% over the decade. This trend underscores Deere's commitment to maintaining robust administrative and sales operations, crucial for its global agricultural machinery market leadership.

Conversely, Pentair plc's SG&A expenses showed a more volatile pattern, peaking in 2014 and then experiencing a gradual decline, reflecting a strategic shift towards leaner operations. By 2023, Pentair's SG&A expenses had decreased by over 50% from their 2014 levels, highlighting a focus on efficiency and cost management.

Interestingly, data for 2024 is incomplete, leaving room for speculation on future trends. As these companies continue to evolve, their SG&A spending will remain a key indicator of their strategic directions.