International Business Machines Corporation or Electronic Arts Inc.: Who Manages SG&A Costs Better?

IBM vs. EA: A Decade of SG&A Cost Management

__timestampElectronic Arts Inc.International Business Machines Corporation
Wednesday, January 1, 2014109000000022472000000
Thursday, January 1, 2015103300000019894000000
Friday, January 1, 2016102800000020279000000
Sunday, January 1, 2017111200000019680000000
Monday, January 1, 2018111000000019366000000
Tuesday, January 1, 2019116200000018724000000
Wednesday, January 1, 2020113700000020561000000
Friday, January 1, 2021128100000018745000000
Saturday, January 1, 2022163400000017483000000
Sunday, January 1, 2023170500000017997000000
Monday, January 1, 2024171000000029536000000
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Cracking the code

Who Manages SG&A Costs Better: IBM or EA?

In the ever-evolving landscape of corporate finance, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. This analysis delves into the SG&A cost management of two industry giants: International Business Machines Corporation (IBM) and Electronic Arts Inc. (EA), from 2014 to 2024.

IBM, a stalwart in the tech industry, consistently reported higher SG&A expenses, averaging around $20.9 billion annually. In contrast, EA, a leader in the gaming sector, maintained a leaner SG&A structure, averaging approximately $1.3 billion per year. Notably, EA's SG&A expenses grew by about 57% over the decade, while IBM's fluctuated, peaking in 2024.

This comparison highlights IBM's larger scale and operational complexity, while EA's agility in cost management reflects its strategic focus on efficiency. As businesses navigate economic uncertainties, understanding these dynamics offers valuable insights into corporate financial strategies.

Published by
U.S. Securities and Exchange Commission

Source link
sec.gov

Date published
28 Jan 2025