RTX Corporation or Pool Corporation: Who Manages SG&A Costs Better?

Managing SG&A Costs: A Tale of Two Corporations

In the competitive landscape of corporate America, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Over the past decade, RTX Corporation and Pool Corporation have demonstrated contrasting approaches to SG&A management. From 2014 to 2023, Pool Corporation consistently maintained lower SG&A expenses, averaging around 630 million annually, which is approximately 10% of RTX's average. Notably, Pool's expenses peaked in 2023, reaching 913 million, a 100% increase from 2014. Meanwhile, RTX Corporation's SG&A expenses fluctuated significantly, peaking at 8.5 billion in 2019 before dropping to 4 billion in 2023. This volatility suggests a strategic shift or external factors impacting RTX's cost management. As businesses navigate economic uncertainties, understanding these trends offers valuable insights into effective cost management strategies.