Optimizing SG&A Costs: A Tale of Two Giants

In the competitive world of technology and services, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. From 2014 to 2023, Microsoft Corporation and CDW Corporation have shown distinct strategies in handling these costs.

Microsoft Corporation: A Steady Climb

Microsoft's SG&A expenses have consistently increased, peaking at over $30 billion in 2023. This represents a 48% rise from 2014, reflecting its expansive growth and investment in innovation. Despite the increase, Microsoft's revenue growth has outpaced SG&A expenses, showcasing efficient cost management.

CDW Corporation: A Different Approach

CDW, on the other hand, has seen its SG&A expenses grow by approximately 138% over the same period, reaching nearly $3 billion in 2023. This sharp increase suggests a strategic focus on scaling operations and expanding market reach.

Both companies exhibit unique approaches to SG&A optimization, with Microsoft focusing on steady growth and CDW on aggressive expansion.