Southwest Airlines Co. or Pool Corporation: 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, Southwest Airlines Co. and Pool Corporation have demonstrated contrasting approaches to handling these costs. From 2014 to 2023, Pool Corporation's SG&A expenses grew by approximately 101%, reflecting a steady increase in operational costs. Meanwhile, Southwest Airlines Co. saw a staggering 1,830% rise, largely due to the airline industry's volatile nature and the impact of global events like the COVID-19 pandemic.

Despite the challenges, Pool Corporation has maintained a more consistent growth trajectory, with expenses peaking at around $913 million in 2023. In contrast, Southwest Airlines Co. faced significant fluctuations, with expenses reaching nearly $4 billion in the same year. This comparison highlights the importance of strategic cost management in different sectors, offering valuable insights for investors and industry analysts alike.