Who Optimizes SG&A Costs Better? Honeywell International Inc. or ZTO Express (Cayman) Inc.

Optimizing SG&A Costs: A Comparative Analysis

In the competitive landscape of global business, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Honeywell International Inc. and ZTO Express (Cayman) Inc. offer a fascinating study in contrasts over the past decade. From 2014 to 2023, Honeywell's SG&A expenses have seen a decline of approximately 16%, from $5.5 billion to $4.7 billion, reflecting a strategic focus on cost optimization. In contrast, ZTO Express has experienced a remarkable increase of over 350% in the same period, from $534 million to $2.4 billion, indicative of its rapid expansion and scaling efforts.

A Decade of Change

While Honeywell's consistent reduction in SG&A costs highlights its efficiency, ZTO's rising expenses underscore its growth trajectory in the logistics sector. This comparison not only sheds light on their financial strategies but also offers insights into their operational priorities.