SG&A Efficiency Analysis: Comparing Delta Air Lines, Inc. and Ferguson plc

SG&A Efficiency: A Tale of Two Giants

In the ever-evolving landscape of global business, understanding the efficiency of Selling, General, and Administrative (SG&A) expenses is crucial. Delta Air Lines, Inc. and Ferguson plc, two industry titans, offer a fascinating study in contrasts. From 2014 to 2024, Delta's SG&A expenses fluctuated, peaking in 2019 before a sharp decline in 2020, likely due to the pandemic's impact. By 2024, Delta's expenses stabilized around $2.5 billion, reflecting a 32% decrease from its 2019 high. Meanwhile, Ferguson plc demonstrated a steady upward trajectory, with SG&A expenses growing by approximately 20% annually, reaching over $6 billion in 2024. This growth underscores Ferguson's strategic expansion and operational scaling. The contrasting trends highlight the diverse challenges and strategies in managing SG&A efficiency across different sectors. As businesses navigate post-pandemic recovery, these insights offer valuable lessons in balancing cost management with growth ambitions.