Deere & Company or PACCAR Inc: Who Manages SG&A Costs Better?

Who Manages SG&A Costs Better: Deere & Company or PACCAR Inc?

In the competitive landscape of industrial giants, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Over the past decade, Deere & Company and PACCAR Inc have demonstrated contrasting approaches to handling these costs. From 2014 to 2024, Deere & Company consistently reported higher SG&A expenses, peaking at approximately $4.5 billion in 2024. In contrast, PACCAR Inc maintained a more conservative approach, with expenses reaching around $785 million in 2023.

Despite Deere's higher absolute costs, their expenses grew by about 37% over the decade, while PACCAR's increased by roughly 40%. This suggests that while Deere operates on a larger scale, PACCAR's cost management strategy is slightly more aggressive. Investors and industry analysts should consider these trends when evaluating the operational efficiency and strategic priorities of these two industrial leaders.