Annual SG&A Expense Ratio Comparison: AstraZeneca vs. Pfizer

A Historical Perspective

The Sales, General, and Administrative (SG&A) expense ratio is a critical metric for evaluating a company's operational efficiency. This article delves into the annual SG&A expense ratios of two pharmaceutical giants, AstraZeneca and Pfizer, from 1985 to 2010.

Key Insights

AstraZeneca's Performance

AstraZeneca's SG&A expense ratio remained relatively stable from 1990 onwards, with notable peaks in the early 2000s. For instance, in 2003, the ratio was approximately 36%, indicating a significant portion of revenue was allocated to operational expenses. This trend continued until 2010, where the ratio slightly decreased to around 31%.

Pfizer's Journey

Pfizer, on the other hand, exhibited a different trend. The early 1990s saw a high SG&A ratio, peaking at around 53% in 1994. However, a downward trend followed, with the ratio dropping to approximately 39% by 2000 and further stabilizing in the subsequent years.

Conclusion

Understanding the SG&A expense ratio provides valuable insights into a company's financial health and operational efficiency. AstraZeneca and Pfizer's historical data reveal distinct trends, reflecting their unique strategic approaches over the years.