Who Optimizes SG&A Costs Better? Texas Instruments Incorporated or Jabil Inc.

Optimizing SG&A Costs: A Tale of Two Giants

In the competitive landscape of the semiconductor and electronics industries, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Texas Instruments Incorporated and Jabil Inc. have been at the forefront of this challenge since 2014. Over the past decade, Jabil Inc. has demonstrated a remarkable 78% increase in SG&A expenses, peaking in 2021. Meanwhile, Texas Instruments has maintained a more stable trajectory, with a modest 3% decrease from 2014 to 2023.

A Decade of Financial Strategy

Jabil's aggressive expansion strategy is evident in its rising SG&A costs, reflecting its investment in growth and market penetration. In contrast, Texas Instruments' consistent cost management underscores its focus on operational efficiency. As of 2023, Texas Instruments' SG&A expenses are approximately 50% higher than Jabil's, highlighting its larger scale and market presence. This comparison offers valuable insights into how these industry leaders balance growth and efficiency.