SG&A Efficiency Analysis: Comparing Johnson & Johnson and Exelixis, Inc.

SG&A Efficiency: A Tale of Two Companies

In the world of corporate finance, Selling, General, and Administrative (SG&A) expenses are a critical measure of operational efficiency. This analysis compares the SG&A expenses of two industry giants: Johnson & Johnson and Exelixis, Inc., from 2014 to 2023.

Johnson & Johnson: A Steady Giant

Over the past decade, Johnson & Johnson has maintained a robust SG&A expense profile, averaging around $21 billion annually. Despite fluctuations, their expenses have shown a slight downward trend, indicating improved efficiency in managing operational costs.

Exelixis, Inc.: A Rising Star

In contrast, Exelixis, Inc. has seen a dramatic increase in SG&A expenses, growing by over 900% from 2014 to 2023. This surge reflects the company's aggressive expansion and investment in growth strategies.

Conclusion

While Johnson & Johnson showcases stability, Exelixis, Inc. exemplifies dynamic growth, each with unique strategies in managing SG&A expenses.