SG&A Efficiency Analysis: Comparing Telefonaktiebolaget LM Ericsson (publ) and Nokia Oyj

SG&A Efficiency: A Tale of Two Giants

In the competitive landscape of telecommunications, understanding the efficiency of Selling, General, and Administrative (SG&A) expenses is crucial. Over the past decade, Telefonaktiebolaget LM Ericsson (publ) and Nokia Oyj have showcased contrasting trends in their SG&A expenditures.

Ericsson's Dominance

From 2014 to 2023, Ericsson consistently outspent Nokia, with SG&A expenses peaking at approximately $37.7 billion in 2023. This represents a 39% increase from its 2014 figures, highlighting Ericsson's aggressive investment in administrative and sales functions.

Nokia's Steady Path

Conversely, Nokia's SG&A expenses remained relatively stable, fluctuating around the $3 billion mark. Despite a peak in 2016, Nokia's expenses in 2023 were only 79% higher than in 2014, indicating a more conservative approach.

Strategic Implications

These trends reflect differing strategic priorities: Ericsson's expansive approach versus Nokia's steady efficiency. Investors and analysts should consider these insights when evaluating the companies' future growth trajectories.