SG&A Spending Patterns: A Tale of Two Giants

In the ever-evolving pharmaceutical industry, understanding the financial strategies of leading companies is crucial. Johnson & Johnson and GSK plc, two titans in the field, have demonstrated distinct approaches to their Selling, General, and Administrative (SG&A) expenses over the past decade.

A Decade of Financial Strategy

From 2014 to 2023, Johnson & Johnson consistently allocated a higher percentage of their revenue to SG&A expenses compared to GSK. In 2014, Johnson & Johnson's SG&A spending was approximately 2.7 times that of GSK. However, by 2023, this ratio had slightly decreased, reflecting a more conservative approach.

Trends and Insights

While GSK's SG&A expenses peaked in 2020, Johnson & Johnson's highest expenditure was in 2018. Notably, both companies experienced a dip in 2022, with GSK's expenses dropping by 27% from their 2020 peak. This trend highlights the dynamic nature of financial strategies in response to global economic shifts.