PACCAR Inc or China Eastern Airlines Corporation Limited: Who Manages SG&A Costs Better?

Managing SG&A Costs: A Tale of Two Giants

In the competitive world of global business, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. PACCAR Inc, a leading American truck manufacturer, and China Eastern Airlines Corporation Limited, a major player in the aviation industry, offer a fascinating comparison. From 2014 to 2023, PACCAR Inc consistently maintained lower SG&A expenses, averaging around 630 million USD annually. In contrast, China Eastern Airlines' SG&A costs fluctuated significantly, peaking at approximately 7.25 billion USD in 2023, a staggering 1,050% higher than PACCAR's expenses that year.

This disparity highlights PACCAR's efficient cost management strategies, especially during economic downturns, such as in 2020 when their expenses were 63% lower than China Eastern Airlines. While China Eastern Airlines faced challenges, particularly in 2020 and 2021, PACCAR's steady approach underscores the importance of strategic financial planning in maintaining competitive advantage.