SG&A Efficiency Analysis: Comparing Cummins Inc. and U-Haul Holding Company

SG&A Efficiency: A Tale of Two Companies

In the world of corporate finance, Selling, General, and Administrative (SG&A) expenses are a critical measure of operational efficiency. Over the past decade, Cummins Inc. and U-Haul Holding Company have showcased contrasting trends in their SG&A expenses. Cummins Inc., a leader in power solutions, has seen a steady increase in SG&A expenses, peaking at approximately $3.2 billion in 2023, a 53% rise from 2014. This upward trend reflects Cummins' strategic investments in innovation and market expansion. Conversely, U-Haul Holding Company, a stalwart in the moving and storage industry, has demonstrated a more conservative approach. Their SG&A expenses have decreased by nearly 87% from 2014 to 2023, indicating a focus on cost efficiency and streamlined operations. This divergence highlights the distinct strategic priorities of these industry giants, offering valuable insights into their operational philosophies.