Southwest Airlines Co. or Rentokil Initial plc: 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. Southwest Airlines Co. and Rentokil Initial plc, two giants in their respective industries, offer a fascinating study in contrasts. Over the past decade, Southwest Airlines has consistently maintained higher SG&A expenses, peaking at nearly 4 billion in 2023. This represents a staggering 1,800% increase from 2014. In contrast, Rentokil Initial plc's SG&A expenses have shown a more modest growth, with a notable spike in 2023, reaching approximately 2.9 billion, a 200% increase from 2014. This data suggests that while Southwest Airlines has a larger scale of operations, Rentokil Initial plc has managed its SG&A costs more efficiently over time. Understanding these trends can provide valuable insights for investors and business strategists alike.