Who Optimizes SG&A Costs Better? Fiserv, Inc. or Fortive Corporation

Optimizing SG&A Costs: A Tale of Two Corporations

In the competitive world of corporate finance, optimizing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Over the past decade, Fiserv, Inc. and Fortive Corporation have taken different paths in managing these costs. From 2014 to 2023, Fiserv's SG&A expenses surged by over 570%, peaking at approximately $6.6 billion in 2023. In contrast, Fortive's expenses grew more modestly, increasing by about 45% to reach $2.1 billion in the same year.

This divergence highlights Fiserv's aggressive expansion strategy, possibly through acquisitions, while Fortive appears to focus on steady, organic growth. The data suggests that Fortive may have a more efficient cost management approach, maintaining a lower SG&A-to-revenue ratio. As investors and analysts evaluate these companies, understanding their cost optimization strategies provides valuable insights into their operational efficiencies and long-term sustainability.