SG&A Efficiency Analysis: Comparing Trane Technologies plc and L3Harris Technologies, Inc.

SG&A Efficiency: A Tale of Two Giants

In the competitive landscape of industrial and defense sectors, understanding SG&A (Selling, General, and Administrative) efficiency is crucial. Trane Technologies plc and L3Harris Technologies, Inc. have shown distinct trends over the past decade. From 2014 to 2023, Trane Technologies consistently maintained higher SG&A expenses, peaking at approximately $3.13 billion in 2019. In contrast, L3Harris saw a significant rise in 2020, reaching around $3.32 billion, before stabilizing.

Key Insights

• Trane Technologies: Despite fluctuations, their SG&A expenses grew by about 18% from 2014 to 2023, reflecting strategic investments in operational efficiency.
• L3Harris Technologies: Experienced a dramatic 275% increase in SG&A expenses from 2014 to 2020, likely due to mergers and acquisitions, before a decline in 2023.
  This analysis highlights the strategic financial maneuvers of these industry leaders, offering insights into their operational priorities.