Breaking Down SG&A Expenses: Watsco, Inc. vs XPO Logistics, Inc.

A Tale of Two Companies: SG&A Expenses Over Time

In the competitive landscape of corporate America, understanding the financial health of a company is crucial. Selling, General, and Administrative (SG&A) expenses are a key indicator of operational efficiency. This analysis compares the SG&A expenses of Watsco, Inc. and XPO Logistics, Inc. from 2014 to 2023.

Watsco, Inc., a leader in HVAC distribution, has seen a steady increase in SG&A expenses, peaking in 2022 with a 47% rise from 2014. This growth reflects their expanding market presence and operational investments. In contrast, XPO Logistics, Inc., a major player in transportation and logistics, experienced a dramatic fluctuation. Their SG&A expenses surged by 414% from 2014 to 2020, followed by a sharp decline of 92% by 2023. This volatility highlights the dynamic nature of the logistics industry and XPO's strategic shifts.

These trends underscore the importance of strategic financial management in sustaining growth and competitiveness.