Optimizing SG&A Costs: A Tale of Two Companies

In the competitive world of business, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. This analysis compares Saia, Inc. and Nordson Corporation over a decade, from 2014 to 2023, to see who optimizes these costs better.

Nordson Corporation: A Steady Climb

Nordson Corporation has shown a consistent increase in SG&A expenses, peaking in 2024 with a 40% rise from 2014. This steady climb reflects their strategic investments in administrative capabilities, though it raises questions about cost efficiency.

Saia, Inc.: A Different Approach

Saia, Inc., on the other hand, has maintained a more conservative growth in SG&A expenses, with a 81% increase from 2014 to 2023. This suggests a more controlled approach, potentially leading to better cost optimization.

Conclusion

While Nordson's expenses are significantly higher, Saia's strategy might indicate a more efficient cost management approach. Missing data for 2024 could provide further insights into these trends.