Operational Costs Compared: SG&A Analysis of Broadcom Inc. and Western Digital Corporation

A Decade of SG&A: Broadcom vs. Western Digital

In the ever-evolving tech industry, operational efficiency is key. Over the past decade, Broadcom Inc. and Western Digital Corporation have showcased contrasting trends in their Selling, General, and Administrative (SG&A) expenses. Broadcom's SG&A expenses surged by over 1,100% from 2014 to 2024, peaking at nearly $5 billion in 2024. This reflects Broadcom's aggressive expansion and strategic acquisitions. In contrast, Western Digital's SG&A expenses remained relatively stable, with a modest 9% increase over the same period, highlighting a more conservative operational approach.

The year 2019 marked a turning point for Broadcom, with expenses surpassing $1.7 billion, while Western Digital's expenses began a gradual decline. By 2023, Broadcom's expenses were nearly double those of Western Digital, emphasizing their divergent strategies. This analysis underscores the importance of operational cost management in maintaining competitive advantage in the tech sector.