Who Optimizes SG&A Costs Better? SAP SE or Cadence Design Systems, Inc.

Optimizing SG&A: A Tale of Two Giants

In the competitive world of technology, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. From 2014 to 2023, SAP SE and Cadence Design Systems, Inc. have shown distinct strategies in optimizing these costs. SAP SE, a leader in enterprise software, consistently reported higher SG&A expenses, peaking at approximately $11 billion in 2022. This reflects their expansive global operations and investment in customer relations. In contrast, Cadence Design Systems, Inc., a key player in electronic design automation, maintained a leaner approach, with expenses growing from around $513 million in 2014 to $921 million in 2023. This 80% increase over the decade highlights their strategic focus on efficiency and innovation. As businesses navigate economic uncertainties, these insights into SG&A management offer valuable lessons in balancing growth and cost control.