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. This analysis compares Howmet Aerospace Inc. and ZTO Express (Cayman) Inc. from 2014 to 2023, revealing intriguing insights into their cost management strategies.

Howmet Aerospace Inc.

Howmet Aerospace Inc. has shown a significant reduction in SG&A expenses over the years. From 2014 to 2023, their expenses decreased by approximately 55%, from 770 million to 343 million. This trend indicates a strategic focus on cost optimization, especially noticeable from 2020 onwards.

ZTO Express (Cayman) Inc.

Conversely, ZTO Express (Cayman) Inc. experienced a substantial increase in SG&A expenses, rising by over 350% from 2014 to 2023. This growth reflects their aggressive expansion strategy, with expenses peaking at 2.43 billion in 2023.

In conclusion, while Howmet Aerospace Inc. excels in cost efficiency, ZTO Express (Cayman) Inc. prioritizes growth, each adopting distinct strategies to navigate their respective markets.