Who Optimizes SG&A Costs Better? The Boeing Company or PACCAR Inc

Optimizing SG&A: A Tale of Two Giants

In the competitive world of aerospace and automotive manufacturing, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Over the past decade, The Boeing Company and PACCAR Inc have demonstrated contrasting strategies in optimizing these costs.

Boeing's High-Flying Costs

From 2014 to 2024, Boeing's SG&A expenses have consistently soared, peaking at approximately $5.17 billion in 2023. This represents a 37% increase from 2015, reflecting the company's expansive operations and complex supply chains.

PACCAR's Steady Course

In contrast, PACCAR Inc has maintained a more stable SG&A trajectory. Despite a 45% increase from 2015 to 2023, their expenses remain significantly lower than Boeing's, highlighting a more conservative approach to cost management.

Conclusion

While Boeing's higher expenses may indicate aggressive growth strategies, PACCAR's steadier costs suggest a focus on efficiency. Investors and industry analysts should consider these trends when evaluating each company's financial health.