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

Optimizing SG&A Costs: A Tale of Two Giants

In the competitive world of semiconductor manufacturing, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Over the past decade, Analog Devices, Inc. and Teradyne, Inc. have showcased distinct strategies in optimizing these costs. From 2014 to 2023, Analog Devices saw a significant increase in SG&A expenses, peaking at approximately $1.27 billion in 2023, reflecting a 180% rise from 2014. In contrast, Teradyne's SG&A expenses grew more modestly, reaching around $571 million in 2023, marking an 80% increase over the same period.

While Analog Devices' expenses surged, possibly due to strategic investments or acquisitions, Teradyne maintained a steadier growth, indicating a more conservative approach. The data for 2024 is incomplete, highlighting the need for ongoing analysis. This comparison underscores the diverse strategies companies employ to balance growth and cost management in a dynamic industry.