SG&A Efficiency Analysis: Comparing SAP SE and Fortive Corporation

SG&A Efficiency: A Tale of Two Giants

In the ever-evolving landscape of global business, understanding the efficiency of Selling, General, and Administrative (SG&A) expenses is crucial. This analysis compares SAP SE and Fortive Corporation, two industry titans, from 2014 to 2023. SAP SE, a leader in enterprise software, consistently outpaces Fortive in SG&A spending, with an average of €8.3 billion annually, compared to Fortive's €1.7 billion. However, Fortive's SG&A expenses grew by 45% over the decade, while SAP's increased by 88%, reflecting different growth strategies. Notably, SAP's peak in 2022, with €11 billion, contrasts with Fortive's steady rise, peaking at €2.2 billion in 2019. This data underscores the strategic choices each company makes in managing operational costs, offering insights into their market positioning and financial health.