Who Optimizes SG&A Costs Better? Pentair plc or Graco Inc.

SG&A Cost Management: Graco vs. Pentair

__timestampGraco Inc.Pentair plc
Wednesday, January 1, 20143035650001493800000
Thursday, January 1, 20153240160001334300000
Friday, January 1, 2016341734000979300000
Sunday, January 1, 20173724960001032500000
Monday, January 1, 2018382988000534300000
Tuesday, January 1, 2019367743000540100000
Wednesday, January 1, 2020355796000520500000
Friday, January 1, 2021422975000596400000
Saturday, January 1, 2022404731000677100000
Sunday, January 1, 2023432156000680200000
Monday, January 1, 2024465133000701400000
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Data in motion

Optimizing SG&A Costs: A Tale of Two Companies

In the competitive landscape of industrial manufacturing, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Over the past decade, Graco Inc. and Pentair plc have demonstrated contrasting approaches to SG&A optimization. From 2014 to 2023, Graco Inc. consistently maintained lower SG&A expenses, averaging around 380 million annually, while Pentair plc's expenses fluctuated significantly, peaking at nearly 1.5 billion in 2014 before stabilizing around 680 million in recent years.

Graco's steady increase in SG&A, with a 53% rise from 2014 to 2023, reflects a controlled growth strategy. In contrast, Pentair's expenses dropped by over 50% from their 2014 high, indicating aggressive cost-cutting measures. The absence of 2024 data for Pentair suggests ongoing adjustments. This analysis highlights the importance of strategic SG&A management in sustaining competitive advantage.

Published by
U.S. Securities and Exchange Commission

Source link
sec.gov

Date published
28 Jan 2025