Southwest Airlines Co. vs Graco Inc.: SG&A Expense Trends

SG&A Expense Trends: A Tale of Two Companies

In the ever-evolving landscape of corporate finance, understanding the trends in Selling, General, and Administrative (SG&A) expenses is crucial for investors and analysts alike. This article delves into the SG&A expense patterns of two prominent companies: Southwest Airlines Co. and Graco Inc., from 2014 to 2023.

Southwest Airlines Co.

Southwest Airlines, a major player in the aviation industry, has seen its SG&A expenses fluctuate significantly over the years. Notably, from 2016 to 2019, there was a remarkable increase of over 40%, reflecting strategic investments and operational expansions. However, the pandemic year of 2020 saw a dip, with expenses dropping by approximately 36% compared to 2019.

Graco Inc.

Graco Inc., a leader in fluid handling systems, exhibited a more stable trend. From 2014 to 2023, Graco's SG&A expenses grew steadily by about 53%, indicating consistent growth and efficient cost management.

This comparative analysis highlights the dynamic nature of SG&A expenses and their impact on corporate strategies.