Who Optimizes SG&A Costs Better? SAP SE or Telefonaktiebolaget LM Ericsson (publ)

Optimizing SG&A Costs: A Tale of Two Giants

In the competitive landscape of global technology, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Over the past decade, SAP SE and Telefonaktiebolaget LM Ericsson (publ) have showcased contrasting strategies in this domain. From 2014 to 2023, SAP SE's SG&A expenses grew by approximately 88%, peaking in 2022. In contrast, Ericsson's expenses surged by about 39% during the same period, with a notable spike in 2023.

While SAP SE's expenses remained relatively stable, Ericsson's fluctuated, reflecting its dynamic market strategies. By 2023, Ericsson's SG&A costs were nearly four times those of SAP SE, highlighting its aggressive expansion and market penetration efforts. This data underscores the strategic choices each company makes in balancing cost management with growth ambitions. As the tech industry evolves, these insights offer a glimpse into the financial stewardship of two industry titans.