Southwest Airlines Co. or Clean Harbors, Inc.: Who Manages SG&A Costs Better?

Managing SG&A Costs: A Tale of Two Companies

In the competitive world of business, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Over the past decade, Clean Harbors, Inc. and Southwest Airlines Co. have demonstrated contrasting approaches to handling these costs. From 2014 to 2023, Clean Harbors maintained a relatively stable SG&A expense, averaging around 500 million annually, with a notable increase of 54% by 2023. In contrast, Southwest Airlines saw a dramatic rise, with SG&A expenses peaking at nearly 4 billion in 2023, a staggering 1,830% increase from 2014. This divergence highlights the strategic differences between a service-oriented airline and an environmental services company. While Clean Harbors focuses on steady growth, Southwest Airlines navigates the volatile airline industry, reflecting broader economic trends. Understanding these dynamics offers valuable insights into corporate financial strategies and industry-specific challenges.