Who Optimizes SG&A Costs Better? 3M Company or AerCap Holdings N.V.

Optimizing SG&A Costs: A Tale of Two Companies

In the competitive world of corporate finance, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. This analysis compares the SG&A cost optimization strategies of 3M Company and AerCap Holdings N.V. over the past decade.

From 2014 to 2023, 3M Company consistently reported higher SG&A expenses, peaking in 2023 with a staggering 21.5 billion dollars. Despite this, 3M's expenses showed a downward trend of approximately 28% from 2014 to 2020, indicating effective cost management strategies. In contrast, AerCap Holdings N.V. maintained a more stable SG&A expense profile, averaging around 337 million dollars annually, with a slight increase of 55% from 2014 to 2023.

While 3M's expenses are significantly higher, their ability to reduce costs over time suggests a robust optimization strategy. AerCap's steady expenses reflect a different approach, focusing on maintaining consistent cost levels.