Who Optimizes SG&A Costs Better? SAP SE or Lam Research Corporation

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 Lam Research Corporation have showcased 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, Lam Research, a key player in semiconductor manufacturing, maintained a leaner SG&A structure, with expenses averaging around $733 million annually. Notably, Lam's expenses grew by about 42% over the decade, while SAP's surged by 112%, indicating different growth trajectories. The data for 2024 is incomplete, highlighting the dynamic nature of financial reporting. As these companies evolve, their SG&A strategies will continue to influence their market positions.