Breaking Down SG&A Expenses: Automatic Data Processing, Inc. vs United Airlines Holdings, Inc.

A Tale of Two Giants: ADP vs. United Airlines

In the world of corporate finance, Selling, General, and Administrative (SG&A) expenses are a critical measure of operational efficiency. Over the past decade, Automatic Data Processing, Inc. (ADP) and United Airlines Holdings, Inc. have showcased contrasting trends in their SG&A expenses.

ADP, a leader in human resources management, has consistently increased its SG&A expenses, reflecting a robust growth strategy. From 2014 to 2023, ADP's expenses rose by approximately 36%, peaking in 2023. This upward trend underscores ADP's commitment to expanding its market presence and enhancing service delivery.

Conversely, United Airlines experienced a more volatile pattern, with a significant dip in 2020, likely due to the pandemic's impact on the aviation industry. However, by 2023, United Airlines had rebounded, with SG&A expenses increasing by 44% from their 2020 low. This recovery highlights the airline's resilience and strategic adjustments in a challenging market.

The data for 2024 remains incomplete, offering a glimpse into the uncertainties and opportunities that lie ahead for these industry titans.