SG&A Efficiency Analysis: Comparing Automatic Data Processing, Inc. and Illinois Tool Works Inc.

SG&A Efficiency: A Tale of Two Giants

In the competitive landscape of corporate America, understanding the efficiency of Selling, General, and Administrative (SG&A) expenses is crucial. Over the past decade, Automatic Data Processing, Inc. (ADP) and Illinois Tool Works Inc. (ITW) have showcased contrasting trends in their SG&A expenditures. From 2014 to 2023, ADP's SG&A expenses have surged by approximately 36%, reflecting a strategic expansion and investment in operational capabilities. In contrast, ITW has maintained a more stable SG&A profile, with a slight decrease of around 12% over the same period, indicating a focus on cost efficiency and streamlined operations. Notably, 2024 data for ITW is missing, suggesting a potential shift or anomaly in reporting. This analysis provides a window into how these industry leaders manage their operational costs, offering insights into their strategic priorities and market positioning.

Discover the Efficiency Trends of ADP and ITW