SG&A Spending Patterns: A Tale of Two Corporations

In the ever-evolving landscape of corporate finance, understanding the spending patterns of industry giants can offer valuable insights. Over the past decade, RTX Corporation and Watsco, Inc. have demonstrated distinct trends in their Selling, General, and Administrative (SG&A) expenses. From 2014 to 2023, RTX Corporation's SG&A expenses fluctuated, peaking in 2019 with a 41% increase from 2014, before declining sharply by 53% in 2023. In contrast, Watsco, Inc. exhibited a steady upward trajectory, with a notable 82% rise in SG&A expenses from 2014 to 2022. This divergence highlights RTX's strategic cost-cutting measures post-2019, while Watsco's consistent growth reflects its expanding market presence. However, data for 2024 remains incomplete, leaving room for speculation on future trends. As these companies navigate economic challenges, their SG&A strategies will be pivotal in shaping their competitive edge.