Who Optimizes SG&A Costs Better? Deere & Company or AerCap Holdings N.V.

Optimizing SG&A Costs: A Tale of Two Giants

In the competitive landscape of global business, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Deere & Company, a leader in agricultural machinery, and AerCap Holdings N.V., a prominent aircraft leasing company, offer a fascinating study in cost optimization from 2014 to 2023.

A Decade of Financial Strategy

Deere & Company consistently maintained higher SG&A expenses, averaging around 3.4 billion annually, reflecting its expansive operations. However, AerCap Holdings N.V. demonstrated a more agile approach, with expenses averaging 338 million, about 10% of Deere's. Notably, AerCap's expenses peaked in 2023, rising by 55% from 2014, while Deere's expenses showed a steadier increase of 10% over the same period.

The Missing Year

Interestingly, data for AerCap in 2024 is missing, leaving room for speculation on its strategic moves. This gap highlights the dynamic nature of financial management in these industries.