Breaking Down SG&A Expenses: Automatic Data Processing, Inc. vs Thomson Reuters Corporation

A Comparative Analysis of SG&A Expenses: ADP vs. Thomson Reuters

In the ever-evolving landscape of corporate finance, understanding Selling, General, and Administrative (SG&A) expenses is crucial for evaluating a company's operational efficiency. Over the past decade, Automatic Data Processing, Inc. (ADP) and Thomson Reuters Corporation have showcased contrasting trends in their SG&A expenses.

From 2014 to 2023, ADP's SG&A expenses have steadily increased by approximately 36%, reflecting a consistent investment in operational capabilities. In contrast, Thomson Reuters experienced a dramatic 99% decrease in SG&A expenses, particularly noticeable from 2018 onwards. This sharp decline could indicate strategic cost-cutting measures or a shift in business focus.

Interestingly, the data for 2024 is incomplete for Thomson Reuters, suggesting a potential restructuring or reporting delay. These insights provide a window into the strategic priorities of these industry giants, offering valuable lessons for investors and analysts alike.