Who Optimizes SG&A Costs Better? Deere & Company or American Airlines Group Inc.

Optimizing SG&A Costs: A Tale of Two Giants

In the competitive world of corporate finance, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Over the past decade, Deere & Company and American Airlines Group Inc. have showcased contrasting strategies in optimizing these costs. From 2014 to 2023, Deere & Company consistently maintained higher SG&A expenses, peaking at approximately $3.6 billion in 2023, a 10% increase from 2014. In contrast, American Airlines Group Inc. demonstrated a more volatile pattern, with expenses fluctuating significantly, notably dropping to $513 million in 2020, likely due to pandemic-related impacts. By 2023, their SG&A expenses rebounded to around $1.8 billion, reflecting a strategic recalibration. This analysis highlights the dynamic nature of cost management in different industries, with Deere & Company showing a steady increase, while American Airlines navigates through economic turbulence.