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. Over the past decade, RTX Corporation and Cummins Inc. have showcased contrasting trends in their SG&A expenditures. From 2014 to 2023, RTX Corporation's SG&A expenses fluctuated significantly, peaking in 2019 with a 30% increase from 2014, before dropping by 53% in 2023. Meanwhile, Cummins Inc. maintained a more stable trajectory, with a notable 53% rise in 2023 compared to 2014. This divergence highlights RTX's strategic shifts and Cummins' consistent operational approach. Missing data for 2024 suggests potential changes on the horizon. As these industry leaders navigate economic challenges, their SG&A strategies will be pivotal in shaping future growth and competitiveness.