Howmet Aerospace Inc. or Southwest Airlines Co.: Who Manages SG&A Costs Better?

SG&A Cost Management: Howmet Aerospace vs. Southwest Airlines

In the competitive landscape of corporate finance, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. This analysis compares Howmet Aerospace Inc. and Southwest Airlines Co. over a decade, from 2014 to 2023, to determine who manages these costs more effectively.

Howmet Aerospace's SG&A expenses have shown a significant decline, dropping by approximately 55% from 2014 to 2023. In contrast, Southwest Airlines experienced a dramatic increase of nearly 1,830% in the same period. Notably, 2020 marked a pivotal year for both companies, with Howmet's expenses plummeting to their lowest, while Southwest's expenses surged.

This trend suggests that Howmet Aerospace has been more successful in controlling its SG&A costs, potentially enhancing its competitive edge. Meanwhile, Southwest Airlines' rising expenses may reflect strategic investments or operational challenges. Understanding these dynamics is essential for investors and stakeholders aiming to make informed decisions.