Verisk Analytics, Inc. or China Eastern Airlines Corporation Limited: Who Manages SG&A Costs Better?

SG&A Cost Management: A Tale of Two Companies

In the competitive world of corporate finance, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. This analysis compares Verisk Analytics, Inc. and China Eastern Airlines Corporation Limited over a decade, from 2014 to 2023.

Verisk Analytics, Inc.: A Model of Consistency

Verisk Analytics has demonstrated remarkable consistency in managing its SG&A costs. With an average annual expense of approximately $375 million, Verisk's expenses have remained stable, peaking at $603 million in 2019. This stability reflects a disciplined approach to cost management, crucial for maintaining profitability in the data analytics sector.

China Eastern Airlines: Navigating Turbulent Skies

In contrast, China Eastern Airlines has faced more volatility. Their SG&A expenses averaged around $3.5 billion annually, with a significant spike to $7.25 billion in 2023. This fluctuation highlights the challenges airlines face, especially during economic downturns and global disruptions.

In conclusion, while Verisk Analytics showcases steady cost control, China Eastern Airlines' expenses reflect the dynamic nature of the aviation industry.