SG&A Efficiency Analysis: Comparing Cummins Inc. and Textron Inc.

SG&A Efficiency: A Tale of Two Giants

In the competitive landscape of industrial manufacturing, understanding the efficiency of Selling, General, and Administrative (SG&A) expenses is crucial. Cummins Inc. and Textron Inc., two stalwarts in the industry, offer a fascinating study in contrasts over the past decade.

From 2014 to 2023, Cummins Inc. demonstrated a steady increase in SG&A efficiency, with expenses rising by approximately 53% from 2014 to 2023. This growth reflects strategic investments and scaling operations. In contrast, Textron Inc. maintained a more conservative approach, with a notable spike in 2024, where SG&A expenses surged dramatically, indicating a potential strategic pivot or one-time expense.

The data reveals that while Cummins Inc. consistently managed its SG&A expenses, Textron Inc.'s recent spike suggests a shift in strategy. This analysis underscores the importance of SG&A efficiency in driving profitability and competitive advantage.