SG&A Efficiency Analysis: Comparing RTX Corporation and HEICO Corporation

SG&A Efficiency: A Tale of Two Corporations

In the competitive landscape of aerospace and defense, understanding the efficiency of Selling, General, and Administrative (SG&A) expenses is crucial. Over the past decade, RTX Corporation and HEICO Corporation have showcased contrasting trends in their SG&A expenditures.

A Decade of Change

From 2014 to 2024, HEICO Corporation's SG&A expenses have surged by approximately 247%, reflecting a strategic expansion and investment in operational capabilities. In contrast, RTX Corporation's SG&A expenses have seen a more modest fluctuation, peaking in 2019 and then experiencing a decline, with a notable 29% drop by 2023.

Strategic Implications

These trends highlight HEICO's aggressive growth strategy, while RTX's recent reductions may indicate a focus on cost optimization. Investors and industry analysts should consider these dynamics when evaluating the operational efficiency and strategic direction of these industry giants.