Cummins Inc. or Carlisle Companies Incorporated: Who Manages SG&A Costs Better?

Managing SG&A Costs: A Tale of Two Companies

In the competitive landscape of industrial manufacturing, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Cummins Inc. and Carlisle Companies Incorporated, two giants in the industry, have shown distinct approaches over the past decade. From 2014 to 2023, Carlisle's SG&A expenses grew by approximately 65%, while Cummins saw a more modest increase of around 53%. Despite Cummins' higher absolute expenses, their growth rate suggests a tighter control over costs relative to revenue. Carlisle, on the other hand, has seen a more significant rise, indicating potential investments in growth or operational inefficiencies. As businesses navigate economic fluctuations, understanding these trends can offer valuable insights into strategic financial management.