Optimizing SG&A Costs: A Tale of Two Companies

In the competitive landscape of corporate America, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Cintas Corporation and TransUnion, two industry giants, have shown distinct strategies in optimizing these costs over the past decade.

Cintas Corporation: A Steady Climb

From 2014 to 2023, Cintas Corporation has seen a consistent increase in SG&A expenses, peaking at approximately $2.37 billion in 2023. This represents an 82% rise from their 2014 figures. Despite the increase, Cintas has maintained a robust growth trajectory, suggesting effective cost management relative to revenue growth.

TransUnion: A Different Path

TransUnion, on the other hand, has experienced a more moderate increase in SG&A expenses, with a notable peak in 2022 at around $1.34 billion. This marks a 207% increase from 2014, indicating a more aggressive expansion strategy.

While Cintas shows a steady and controlled growth in expenses, TransUnion's strategy reflects a more dynamic approach, albeit with some missing data for 2024. The comparison highlights the diverse strategies companies employ to optimize operational costs.