SAP SE or HP Inc.: Who Manages SG&A Costs Better?

SAP SE vs. HP Inc.: A Tale of SG&A Management

In the competitive world of technology, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. From 2014 to 2023, SAP SE and HP Inc. have shown distinct strategies in handling these costs. HP Inc. started with a significant SG&A expense of approximately $13.4 billion in 2014, which drastically reduced by 71% to around $3.8 billion in 2016. This reduction reflects HP's aggressive cost-cutting measures. In contrast, SAP SE's SG&A expenses have steadily increased, peaking at about $11 billion in 2022, indicating a strategic investment in growth and expansion.

Interestingly, HP Inc. maintained a relatively stable SG&A expense from 2017 onwards, averaging around $5.5 billion annually. Meanwhile, SAP SE's expenses fluctuated, with a notable 17% increase from 2019 to 2022. The data for 2024 is incomplete, highlighting the dynamic nature of financial management in these tech giants.