Managing SG&A Costs: A Tale of Two Giants

In the competitive landscape of corporate America, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Fiserv, Inc. and Fortive Corporation, two industry leaders, have shown contrasting trends in their SG&A management from 2014 to 2023.

Fiserv's Rising SG&A

Fiserv's SG&A expenses have surged by over 570% from 2014 to 2023, peaking at approximately $6.6 billion. This dramatic increase, particularly post-2018, suggests aggressive expansion or restructuring efforts.

Fortive's Steady Approach

Conversely, Fortive Corporation has maintained a more stable SG&A trajectory, with a modest 46% increase over the same period, reaching around $2.1 billion in 2023. This stability may reflect a more controlled growth strategy.

Conclusion

While Fiserv's rising costs may indicate growth, Fortive's steadiness suggests efficient cost management. Investors should weigh these strategies against their risk tolerance and growth expectations.