Who Optimizes SG&A Costs Better? Analog Devices, Inc. or KLA Corporation

Optimizing SG&A Costs: A Tale of Two Giants

In the competitive landscape of semiconductor companies, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Over the past decade, Analog Devices, Inc. and KLA Corporation have demonstrated distinct strategies in optimizing these costs. From 2014 to 2023, Analog Devices saw a 180% increase in SG&A expenses, peaking in 2023. Meanwhile, KLA Corporation's expenses rose by 156% during the same period, with a notable surge in 2023.

Analog Devices consistently maintained higher SG&A costs, reflecting its expansive operational strategy. In contrast, KLA Corporation's more conservative approach allowed it to keep expenses relatively lower, despite a significant uptick in recent years. As both companies navigate the evolving market, their ability to manage these costs will be pivotal in sustaining competitive advantage. This analysis provides a window into their financial strategies, offering insights into their operational efficiencies and market positioning.