Thomson Reuters Corporation or Xylem Inc.: Who Manages SG&A Costs Better?

Managing SG&A Costs: A Tale of Two Companies

In the competitive world of corporate finance, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Over the past decade, Thomson Reuters Corporation and Xylem Inc. have showcased contrasting strategies in this domain. From 2014 to 2023, Thomson Reuters saw a dramatic 99% reduction in SG&A expenses, plummeting from $9.2 billion to a mere $64 million. This sharp decline, particularly post-2018, suggests a strategic overhaul or divestiture. In contrast, Xylem Inc. maintained a steady increase, with expenses rising by 91% from $920 million to $1.76 billion. This consistent growth indicates a potential expansion strategy or increased operational investments. The data highlights the diverse approaches these companies have taken in managing their operational costs, reflecting broader strategic priorities. As businesses navigate economic uncertainties, understanding these trends offers valuable insights into corporate financial management.