SG&A Cost Management: A Tale of Two Giants

In the competitive landscape of corporate finance, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Over the past decade, Stanley Black & Decker, Inc. and Thomson Reuters Corporation have showcased contrasting strategies in this domain. From 2014 to 2023, Stanley Black & Decker maintained a relatively stable SG&A expense, averaging around $2.94 billion annually. In contrast, Thomson Reuters saw a dramatic reduction, from $9.21 billion in 2014 to a mere $64 million by 2023, reflecting a strategic shift or restructuring.

Key Insights

• Stanley Black & Decker: Consistent management with a slight upward trend, peaking in 2022.
• Thomson Reuters: Significant cost-cutting, reducing SG&A by over 99% in nine years.

This analysis highlights the diverse approaches to cost management, offering valuable lessons for businesses aiming to optimize their financial strategies.