Caterpillar Inc. or Eaton Corporation plc: Who Manages SG&A Costs Better?

Managing SG&A Costs: A Tale of Two Giants

In the competitive landscape of industrial manufacturing, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Over the past decade, Caterpillar Inc. and Eaton Corporation plc have demonstrated contrasting approaches to SG&A management. From 2014 to 2023, Caterpillar's SG&A expenses fluctuated, peaking at approximately 6.4 billion in 2023, a 12% increase from 2014. In contrast, Eaton's expenses showed a more stable trend, with a slight decrease of around 1% over the same period, ending at nearly 3.8 billion in 2023. This suggests that Eaton has been more consistent in controlling its SG&A costs, potentially reflecting a more efficient operational strategy. As these industry leaders continue to innovate, their ability to manage these expenses will remain a key factor in their financial health and competitive edge.