Who Optimizes SG&A Costs Better? Delta Air Lines, Inc. or Watsco, Inc.

Optimizing 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. Delta Air Lines, Inc. and Watsco, Inc. offer a fascinating comparison in this regard. Over the past decade, Delta's SG&A expenses have fluctuated significantly, peaking in 2019 before a sharp decline in 2020, likely due to the pandemic's impact. In contrast, Watsco has shown a more consistent increase, with a notable 87% rise from 2014 to 2023.

Delta's expenses dropped by 84% in 2020, reflecting strategic cost-cutting measures during challenging times. Meanwhile, Watsco's steady growth in SG&A expenses suggests a different approach, possibly investing in expansion and customer service. The data for 2024 is incomplete, but the trends highlight the distinct strategies of these industry leaders. Understanding these patterns can provide valuable insights for investors and business strategists alike.