SG&A Efficiency Analysis: Comparing Cisco Systems, Inc. and Fiserv, Inc.

SG&A Efficiency: A Tale of Two Giants

In the ever-evolving landscape of technology and financial services, understanding operational efficiency is crucial. Cisco Systems, Inc. and Fiserv, Inc. offer a fascinating study in contrasts when it comes to Selling, General, and Administrative (SG&A) expenses. Over the past decade, Cisco has consistently maintained SG&A expenses around 11% of its revenue, showcasing a stable operational strategy. In contrast, Fiserv's SG&A expenses have surged by over 570% from 2014 to 2023, reflecting its aggressive expansion and acquisition strategy.

A Decade of Change

From 2014 to 2023, Cisco's SG&A expenses grew modestly, peaking in 2024. Meanwhile, Fiserv's expenses saw a dramatic rise, particularly post-2018, aligning with its strategic acquisitions. This divergence highlights the different paths these companies have taken to navigate their respective industries. As we look to the future, the question remains: will Fiserv's investments pay off, or will Cisco's steady approach prove more sustainable?