SG&A Cost Management: Honeywell vs. Axon

In the competitive landscape of corporate finance, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Honeywell International Inc. and Axon Enterprise, Inc. offer a fascinating case study in this regard. Over the past decade, Honeywell's SG&A expenses have fluctuated between $4.7 billion and $6 billion, reflecting a stable yet substantial cost structure. In contrast, Axon has seen a dramatic rise, with expenses increasing nearly tenfold from $54 million in 2014 to $515 million in 2021.

A Decade of Financial Strategy

From 2014 to 2023, Honeywell's SG&A expenses have shown a slight downward trend, decreasing by approximately 16%. Meanwhile, Axon has experienced a staggering 850% increase, indicative of its aggressive growth strategy. This divergence highlights the different financial strategies employed by these companies: Honeywell's focus on efficiency versus Axon's investment in expansion.

Understanding these trends provides valuable insights into how these industry leaders manage their operational costs.