Owens Corning or China Eastern Airlines Corporation Limited: Who Manages SG&A Costs Better?

SG&A Cost Management: A Tale of Two Giants

In the world of corporate finance, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Owens Corning and China Eastern Airlines Corporation Limited, two industry titans, offer a fascinating study in contrasts. From 2014 to 2023, Owens Corning consistently maintained lower SG&A expenses, averaging around 670 million annually. In contrast, China Eastern Airlines' SG&A costs were significantly higher, averaging 3.5 billion, nearly five times that of Owens Corning.

A Decade of Financial Strategy

Owens Corning's strategic cost management is evident, with expenses peaking at 831 million in 2023, a modest 71% increase from 2014. Meanwhile, China Eastern Airlines saw a dramatic spike in 2023, with expenses soaring to 7.25 billion, a staggering 76% increase from the previous year. This disparity highlights the challenges faced by the airline industry, especially in volatile economic climates.