SG&A Efficiency Analysis: Comparing RTX Corporation and Builders FirstSource, Inc.

SG&A Efficiency: A Decade in Review

In the ever-evolving landscape of corporate finance, understanding the efficiency of Selling, General, and Administrative (SG&A) expenses is crucial. Over the past decade, RTX Corporation and Builders FirstSource, Inc. have showcased distinct trajectories in their SG&A spending. From 2014 to 2023, Builders FirstSource, Inc. saw a staggering increase of over 1,150% in SG&A expenses, peaking in 2022. In contrast, RTX Corporation's SG&A expenses fluctuated, with a notable dip in 2023, marking a 38% decrease from its 2019 peak. This divergence highlights the strategic differences between the two companies. While Builders FirstSource, Inc. aggressively expanded its operational footprint, RTX Corporation appears to have streamlined its operations post-2019. As we look to 2024, RTX's data remains incomplete, leaving room for speculation on its future financial strategies. This analysis underscores the importance of SG&A efficiency in driving corporate success.