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

Optimizing SG&A Costs: A Tale of Two Giants

In the competitive world of business, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Fastenal Company and American Airlines Group Inc. offer a fascinating study in contrasts. Over the past decade, Fastenal has shown a steady increase in SG&A expenses, peaking at approximately 1.89 billion in 2024. In contrast, American Airlines experienced a significant dip in 2020, with expenses dropping to around 513 million, likely due to the pandemic's impact on the airline industry. However, by 2023, American Airlines rebounded, reaching nearly 1.8 billion, a 250% increase from 2020. Fastenal's consistent growth in SG&A expenses, with a 64% increase from 2014 to 2024, suggests a strategic investment in operations. This comparison highlights the dynamic nature of cost management across industries, with each company adapting to its unique challenges and opportunities.