SG&A Efficiency Analysis: Comparing Cummins Inc. and Expeditors International of Washington, Inc.

SG&A Efficiency: A Tale of Two Giants

In the competitive landscape of corporate America, understanding the efficiency of Selling, General, and Administrative (SG&A) expenses is crucial. Cummins Inc. and Expeditors International of Washington, Inc. offer a fascinating study in contrasts. Over the past decade, Cummins has seen a steady increase in SG&A expenses, peaking at approximately $3.2 billion in 2023, a 53% rise from 2014. In contrast, Expeditors International's SG&A expenses have remained relatively stable, with a slight increase of around 27% over the same period, reaching $27.9 million in 2023. This divergence highlights differing strategic priorities and operational efficiencies. Cummins' significant growth in SG&A could indicate aggressive expansion or increased operational costs, while Expeditors' stable expenses suggest a focus on cost control and efficiency. As businesses navigate the post-pandemic economy, these insights into SG&A efficiency are more relevant than ever.