SG&A Efficiency: A Tale of Two Companies

In the ever-evolving landscape of corporate finance, understanding the efficiency of Selling, General, and Administrative (SG&A) expenses is crucial. Fiserv, Inc. and Workday, Inc. offer a fascinating study in contrasts from 2014 to 2023. Fiserv's SG&A expenses surged by over 570% during this period, peaking at approximately $6.6 billion in 2023. This reflects its aggressive expansion and investment strategies. In contrast, Workday's SG&A expenses grew by around 830%, reaching nearly $2.5 billion in 2023, showcasing its rapid scaling in the tech sector.

While Fiserv's expenses consistently outpaced Workday's, the latter's growth rate indicates a strategic focus on scaling operations efficiently. Notably, 2024 data for Fiserv is missing, leaving room for speculation on its future trajectory. This analysis underscores the importance of SG&A efficiency in driving corporate success and offers valuable insights for investors and analysts alike.