SG&A Efficiency Analysis: Comparing Automatic Data Processing, Inc. and Global Payments Inc.

SG&A Efficiency: A Tale of Two Giants

In the ever-evolving landscape of financial services, understanding operational efficiency is crucial. This analysis delves into the Selling, General, and Administrative (SG&A) expenses of Automatic Data Processing, Inc. (ADP) and Global Payments Inc. over the past decade. From 2014 to 2023, ADP's SG&A expenses grew by approximately 36%, reflecting a steady increase in operational costs. In contrast, Global Payments Inc. saw a staggering 214% rise, highlighting a more aggressive expansion strategy.

Key Insights

• ADP's Consistency: ADP maintained a relatively stable growth in SG&A expenses, with a notable increase in 2023, reaching its peak.
• Global Payments' Surge: The significant jump in Global Payments' expenses, especially post-2019, suggests strategic investments in growth and technology.

This comparison underscores the diverse strategies of these industry leaders, offering insights into their operational priorities and market positioning.