SAP SE or ON Semiconductor Corporation: Who Manages SG&A Costs Better?

SAP SE vs. ON Semiconductor: A Decade of SG&A Management

In the ever-evolving landscape of corporate finance, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Over the past decade, SAP SE and ON Semiconductor Corporation have demonstrated contrasting approaches to SG&A cost management. From 2014 to 2023, SAP SE's SG&A expenses have consistently been higher, peaking at approximately €11 billion in 2022. In contrast, ON Semiconductor's expenses have shown a more modest increase, reaching around €641 million in 2023. This disparity highlights SAP SE's expansive operational scale compared to ON Semiconductor's more streamlined approach. Despite SAP's larger absolute figures, both companies have shown a commitment to optimizing their SG&A costs, with SAP SE achieving a 90% increase over the period, while ON Semiconductor saw a 68% rise. These trends underscore the strategic financial management required to navigate the complexities of global markets.