Salesforce, Inc. or II-VI Incorporated: Who Manages SG&A Costs Better?

Salesforce vs. II-VI: A Tale of SG&A Management

In the competitive landscape of corporate finance, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Over the past decade, Salesforce, Inc. and II-VI Incorporated have demonstrated contrasting approaches to SG&A cost management.

Salesforce, a leader in cloud-based solutions, has seen its SG&A expenses grow significantly, reflecting its aggressive expansion strategy. From 2014 to 2023, Salesforce's SG&A costs surged by approximately 480%, peaking at $16 billion in 2023. This growth underscores Salesforce's commitment to scaling its operations and market presence.

Conversely, II-VI Incorporated, a key player in engineered materials and optoelectronic components, has maintained a more conservative SG&A growth trajectory. Over the same period, II-VI's SG&A expenses increased by about 650%, reaching just over $1 billion in 2023. This indicates a more measured approach to cost management, focusing on sustainable growth.

While Salesforce's strategy emphasizes rapid expansion, II-VI's approach highlights disciplined financial management. The missing data for 2024 suggests ongoing developments in Salesforce's financial strategy.