Operational Costs Compared: SG&A Analysis of Automatic Data Processing, Inc. and Allegion plc

A Comparative Analysis of SG&A Expenses: ADP vs. Allegion

In the ever-evolving landscape of corporate finance, understanding operational costs is crucial. This analysis delves into the Selling, General, and Administrative (SG&A) expenses of Automatic Data Processing, Inc. (ADP) and Allegion plc from 2014 to 2023. Over this period, ADP consistently outpaced Allegion in SG&A expenses, with ADP's costs peaking at approximately $3.55 billion in 2023, marking a 29% increase from 2014. In contrast, Allegion's expenses grew by 64%, reaching around $866 million in 2023. This disparity highlights ADP's larger scale of operations. However, Allegion's rapid growth in SG&A expenses suggests a strategic expansion. Notably, data for Allegion in 2024 is missing, indicating potential reporting delays or strategic shifts. This analysis underscores the importance of SG&A expenses as a barometer for corporate strategy and operational efficiency.