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. RTX Corporation and Southwest Airlines Co. have been navigating this financial landscape since 2014. Over the years, RTX Corporation has consistently maintained higher SG&A expenses, peaking in 2019. However, by 2023, they managed to reduce these costs by approximately 53% from their 2019 high. In contrast, Southwest Airlines Co. saw a significant increase in SG&A expenses, rising nearly 93% from 2014 to 2023. This divergence highlights RTX's strategic cost optimization efforts, while Southwest's increase may reflect growth or operational challenges. Notably, 2024 data for Southwest is missing, leaving room for speculation on their future financial strategies. As these industry leaders continue to evolve, their approaches to SG&A management offer valuable insights into corporate efficiency and adaptability.