Cost Management Insights: SG&A Expenses for Cummins Inc. and China Eastern Airlines Corporation Limited

Navigating the Skies and Roads: A Comparative Analysis of SG&A Expenses

In the ever-evolving landscape of global business, effective cost management is crucial for maintaining competitive advantage. This analysis delves into the Selling, General, and Administrative (SG&A) expenses of two industry giants: Cummins Inc., a leader in engine manufacturing, and China Eastern Airlines Corporation Limited, a major player in the aviation sector.

From 2014 to 2023, China Eastern Airlines experienced a significant fluctuation in SG&A expenses, peaking in 2023 with a 130% increase from its lowest point in 2021. In contrast, Cummins Inc. demonstrated a more stable trajectory, with a gradual 53% rise over the same period. This disparity highlights the volatile nature of the airline industry compared to the relatively steady automotive sector.

Understanding these trends provides valuable insights into the strategic financial management practices of these companies, offering lessons in resilience and adaptability.