SG&A Efficiency Analysis: Comparing Broadcom Inc. and Teradyne, Inc.

SG&A Efficiency: A Tale of Two Tech Giants

In the ever-evolving tech landscape, understanding operational efficiency is crucial. Broadcom Inc. and Teradyne, Inc., two stalwarts in the semiconductor industry, offer a fascinating study in SG&A (Selling, General, and Administrative) expenses over the past decade. From 2014 to 2023, Broadcom's SG&A expenses surged by approximately 291%, peaking in 2024 with a notable increase. In contrast, Teradyne's expenses grew by about 79% over the same period, reflecting a more conservative approach.

Broadcom's aggressive expansion strategy is evident in its rising SG&A costs, which could indicate significant investments in sales and administrative capabilities. Meanwhile, Teradyne's steadier growth suggests a focus on maintaining operational efficiency. The data for 2024 is incomplete for Teradyne, highlighting the need for further analysis. This comparison underscores the diverse strategies employed by tech giants to navigate the competitive landscape.