SG&A Efficiency Analysis: Comparing Shopify Inc. and Leidos Holdings, Inc.

SG&A Efficiency: A Tale of Two Companies

In the ever-evolving landscape of corporate finance, understanding the efficiency of Selling, General, and Administrative (SG&A) expenses is crucial. Over the past decade, Shopify Inc. and Leidos Holdings, Inc. have demonstrated contrasting trajectories in their SG&A expenditures.

Shopify Inc.: A Rapid Ascent

From 2014 to 2023, Shopify's SG&A expenses skyrocketed by over 2,800%, reflecting its aggressive growth strategy. By 2022, Shopify's SG&A expenses peaked, accounting for a significant portion of its operational costs. This surge underscores Shopify's commitment to scaling its operations and expanding its market presence.

Leidos Holdings, Inc.: Steady and Strategic

Conversely, Leidos Holdings exhibited a more measured approach, with SG&A expenses increasing by approximately 200% over the same period. This steady growth highlights Leidos' focus on maintaining operational efficiency while expanding its footprint in the defense and technology sectors.

In conclusion, while Shopify's rapid growth is impressive, Leidos' strategic stability offers a compelling narrative of efficiency in a competitive market.