Deere & Company and Watsco, Inc.: 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 Watsco, Inc. offer a fascinating study in contrasts when it comes to Selling, General, and Administrative (SG&A) expenses over the past decade.

From 2014 to 2023, Deere & Company consistently increased its SG&A expenses, peaking in 2024 with a 37% rise from its 2016 low. This upward trend suggests a strategic investment in growth and operational efficiency. In contrast, Watsco, Inc. saw a more modest increase, with a 82% rise from 2014 to 2022, before a slight dip in 2023. This could indicate a more conservative approach, focusing on steady growth.

Interestingly, data for 2024 is missing for Watsco, Inc., leaving room for speculation on its future strategy. These spending patterns provide a window into each company's operational focus and market positioning.