Shopify Inc. or Fortive Corporation: Who Manages SG&A Costs Better?

Shopify vs. Fortive: 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, Fortive Corporation and Shopify Inc. have demonstrated contrasting approaches to SG&A management. Fortive, a diversified industrial technology company, has maintained a relatively stable SG&A expense growth, averaging around 1.7 billion annually. In contrast, Shopify, a leading e-commerce platform, has seen its SG&A expenses skyrocket by over 3,200% from 2014 to 2023, reflecting its rapid expansion and investment in growth.

While Fortive's expenses peaked in 2019, Shopify's expenses reached their zenith in 2022, nearly matching Fortive's at 1.9 billion. This comparison highlights the strategic differences between a mature industrial player and a burgeoning tech giant. As investors and analysts evaluate these companies, understanding their SG&A strategies offers valuable insights into their operational efficiencies and growth trajectories.