Business Analysis of Adient

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Adient

Business Overview

Adient plc, formerly Adient Limited, is an automotive seating supplier. The Company designs, manufactures and markets a range of seating systems and components for passenger cars, commercial vehicles, and light trucks, including vans, pick-up trucks, and sport/crossover utility vehicles. The Company operates through two segments: Seating and Interiors. The Seating segment produces automotive seat metal structures, and mechanisms, foam, trim, fabric and complete seat systems. The Interiors segment produces instrument panels, floor consoles, door panels, overhead consoles, cockpit systems, decorative trim and other products. The Company also supplies various seating systems to the international motorsports industry through its RECARO brand of products. It operates approximately 230 manufacturing or assembly facilities, with operations in over 30 countries. Its technologies focus on offering automotive seating solutions in a range of areas, including frames, armrests and fabrics.

Adient

Adient


R&P Rank: 163
Sector: Automobiles and Parts
Industry:Auto Parts
H.Q Location:Not In U.S.A.
Website: www.adient.com
Company Address:
25-28 NORTH WALL QUAY, DUBLIN, IRELAND
Ph:1414-524-1200

Business Analysis of Adient

The Automobiles and Parts Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Adient compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Adient to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Adient with an interactive chart.

  1. Revenue Growth: Adient reported a revenue growth of -16.1% year-on-year during 2016. Auto Parts Industry grew at 1.1% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Adient spent 90.4% of its total revenues on COGS. Auto Parts industry average (COGS share of revenue) in the same period was 74.6%
  3. R&D share of Revenues: Adient R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Adient spent 7.3% of its total revenues on Sales, Marketing, and General Administration (SG&A). Auto Parts industry average SG&A spending in the same period was 13.9%
  5. Inventory share of Revenues: As a percentage of revenue, Adient spent 3.9% of its total revenues on Inventories. Auto Parts industry average Inventory spending in the same period was 14.7%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Adient invested 16.5% of its total revenues on Accounts Payable (A/P) Auto Parts industry average Accounts Payable investment in the same period was 17.5%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Adient invested 12.4% of its total revenues on Accounts Receivable (A/R). Auto Parts industry average Accounts Receivable investment in the same period was 12.8%
  8. PP&E share of Revenues: As a percentage of revenue, Adient invested 13.0% of its total revenues on Property, Plants, and Equipments (PP&E). Auto Parts industry average PPE investment in the same period was 21.0%
  9. Intangibles share of Revenues: As a percentage of revenue, Adient invested 13.6% of its total revenues on Intangibles. Auto Parts industry average Intangibles investment in the same period was 14.2%
  10. Net Margins: Adient Net Margins in the year 2016 were -9.1%. Auto Parts industry average Net Margins in the same period were 5.3%

Sector and Industry Association of Adient

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.

Adient is associated with Industrials Sector Group, Automobiles and Parts Sector, and Auto Parts Industry.

Automobiles and Parts sector is comprised of the following industries: Automobiles; Auto Parts. The definitions for each of the industries is as follows:

  • Automobiles industry includes manufacturers of passenger vehicle that includes Cars, SUVs etc. and recreational vehicles including motorcycles like Harley Davidson. Companies making boats and other recreational vehicles are also part of Automobiles industry.
  • Auto Parts industry includes manufacturers and distributors of automobile parts including engines, batteries and also tires.

Industry Ranking of Adient

With $16.8 billion revenues, Adient ranked number 2 of all the companies in the US Auto Parts industry. There were a total of 38 public companies in the US Auto Parts industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Auto Parts industry by revenues during 2016 were:

  1. Lear ($18.6 billion)
  2. Adient ($16.8 billion)
  3. Delphi Automotive ($16.7 billion)
  4. Genuine Parts ($15.3 billion)
  5. Goodyear Tire & Rubber ($15.2 billion)
  6. AutoZone ($10.6 billion)
  7. Autoliv ($10.1 billion)
  8. Advance Auto Parts ($9.6 billion)
  9. BorgWarner ($9.1 billion)
  10. Tenneco ($8.6 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Adientand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of adient

Lear (LEA) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Lear Corp with $19 billion revenues in the year 2016 was the number 1 Auto Parts company. Read this report to know the top competitors of Lear and identify growth and cost optimization opportunities of Lear

Delphi Automotive (DLPH) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Delphi Automotive Plc with $17 billion revenues in the year 2016 was the number 3 Auto Parts company. Read this report to know the top competitors of Delphi Automotive and identify growth and cost optimization opportunities of Delphi Automotive

Genuine Parts (GPC) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Genuine Parts Co with $15 billion revenues in the year 2016 was the number 4 Auto Parts company. Read this report to know the top competitors of Genuine Parts and identify growth and cost optimization opportunities of Genuine Parts

Goodyear Tire & Rubber (GT) Business Analysis – Analyze Historical Performance,...

Goodyear Tire & Rubber Co with $15 billion revenues in the year 2016 was the number 5 Auto Parts company. Read this report to know the top competitors of Goodyear Tire & Rubber and identify growth and cost optimization opportunities of Goodyear Tire & Rubber

AutoZone (AZO) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

AutoZone Inc with $11 billion revenues in the year 2016 was the number 6 Auto Parts company. Read this report to know the top competitors of AutoZone and identify growth and cost optimization opportunities of AutoZone

Autoliv (ALV) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Autoliv Inc with $10 billion revenues in the year 2016 was the number 7 Auto Parts company. Read this report to know the top competitors of Autoliv and identify growth and cost optimization opportunities of Autoliv

Revenues Analysis

Adient (ADNT) Revenues And Revenue Growth From 2013 To 2016

This report provides the last four years revenues and revenue growth of Adient Plc (ADNT) from 2013 to 2016. Adient generated a total of $16.8 billion revenues during 2016. Adient reported a revenue growth of -16.1% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in September.

Adient (ADNT) Revenues And Revenue Growth From 2013 To 2016

This report provides the last four years revenues and revenue growth of Adient Plc (ADNT) from 2013 to 2016. Adient generated a total of $16.8 billion revenues during 2016. Adient reported a revenue growth of -16.1% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in September.

Adient (ADNT) Revenue Growth Comparison With Industry Growth From 2014 To...

This report provides a comparison of Adient Plc (ADNT) revenue growth with Auto Parts industry growth during the last three years from 2014 to 2016. Adient reported a revenue growth of -16.1% year-over-year during 2016. The Auto Parts industry growth was 1.1% year-over-year during 2016. Adient growth was slower than the industry during 2016.

Profit Analysis

Adient (ADNT) Net Profit And Net Margin From 2013 To 2016

This report provides the last four years net profit and net margin of Adient Plc (ADNT) from 2013 to 2016. Adient reported a total net income of -$1.5 billion during 2016. Adient generated a total of $16.8 billion revenues during 2016. Adient net profit margin was -9.1% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in September.