Business Analysis of AES

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

Business Overview

The AES Corporation operates as a diversified power generation and utility company. It owns and/or operates power plants to generate and sell power to customers, such as utilities, industrial users, and other intermediaries. The company also owns and/or operates utilities to generate or purchase, distribute, transmit, and sell electricity to end-user customers in the residential, commercial, industrial, and governmental sectors; and generates and sells electricity on the wholesale market. It uses a range of fuels to generate electricity, including hydro, coal/ petroleum coke, oil, gas/diesel, biomass, solar, wind, energy storage, and landfill gas. The company owns and/or operates a generation portfolio of approximately 30,379 megawatts. It has operations in the United States, Chile, Colombia, Argentina, Brazil, Mexico, Central America, the Caribbean, Europe, and Asia. The company was formerly known as Applied Energy Services, Inc. and changed its name to The AES Corporation in April 2000. The AES Corporation was founded in 1981 and is headquartered in Arlington, Virginia.

AES

AES


R&P Rank: 205
Sector: Utilities
Industry:Electric Utilities
H.Q Location:Virginia
Website: www.aes.com
Company Address:
4300 WILSON BOULEVARD, ARLINGTON VA 22203
Ph:703-522-1315

Business Analysis of AES

The Utilities 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 AES 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 AES 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 AES with an interactive chart.

  1. Revenue Growth: AES reported a revenue growth of -4.0% year-on-year during 2016. Electric Utilities Industry grew at 0.2% in the same period
  2. COGS share of Revenues: As a percentage of revenue, AES spent 82.1% of its total revenues on COGS. Electric Utilities industry average (COGS share of revenue) in the same period was 64.7%
  3. R&D share of Revenues: AES 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, AES spent 1.4% of its total revenues on Sales, Marketing, and General Administration (SG&A). Electric Utilities industry average SG&A spending in the same period was 1.2%
  5. Inventory share of Revenues: As a percentage of revenue, AES spent 4.6% of its total revenues on Inventories. Electric Utilities industry average Inventory spending in the same period was 7.6%
  6. Accounts Payable share of Revenues: As a percentage of revenue, AES invested 12.2% of its total revenues on Accounts Payable (A/P) Electric Utilities industry average Accounts Payable investment in the same period was 11.9%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, AES invested 15.9% of its total revenues on Accounts Receivable (A/R). Electric Utilities industry average Accounts Receivable investment in the same period was 14.5%
  8. PP&E share of Revenues: As a percentage of revenue, AES invested 168.2% of its total revenues on Property, Plants, and Equipments (PP&E). Electric Utilities industry average PPE investment in the same period was 286.7%
  9. Intangibles share of Revenues: As a percentage of revenue, AES invested 11.2% of its total revenues on Intangibles. Electric Utilities industry average Intangibles investment in the same period was 22.3%
  10. Net Margins: AES Net Margins in the year 2016 were -8.4%. Electric Utilities industry average Net Margins in the same period were 3.3%

Sector and Industry Association of AES

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.

AES is associated with Utilities Sector and Electric Utilities Industry.

Utilities sector is comprised of the following industries: Electric Utilities; Gas, Water, & Multiutlities. The definitions for each of the industries is as follows:

  • Electric Utilities industry includes companies engaged in generation, transmission, and/or distribution of electric energy for sale.
  • Gas, Water, & Multiutlities industry includes companies engaged in transmission and/or storage of natural gas for sale and those engaged in distributing water for sale for domestic, commercial, and industrial use. It also includes companies with significant presence in more than one utility.

Industry Ranking of AES

With $13.6 billion revenues, AES ranked number 5 of all the companies in the US Electric Utilities industry. There were a total of 33 public companies in the US Electric Utilities industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Electric Utilities industry by revenues during 2016 were:

  1. Southern ($19.9 billion)
  2. American Electric Power ($16.4 billion)
  3. NextEra Energy ($16.2 billion)
  4. FirstEnergy ($14.6 billion)
  5. AES ($13.6 billion)
  6. NRG Energy ($12.4 billion)
  7. Edison International ($11.9 billion)
  8. Dominion Resources ($11.7 billion)
  9. Entergy ($10.8 billion)
  10. DTE Energy ($10.6 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 AESand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of aes

American Electric Power (AEP) Business Analysis – Analyze Historical Performance, Strategic...

American Electric Power Co Inc with $16 billion revenues in the year 2016 was the number 2 Electric Utilities company. Read this report to know the top competitors of American Electric Power and identify growth and cost optimization opportunities of American Electric Power

NextEra Energy (NEE) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

NextEra Energy Inc with $16 billion revenues in the year 2016 was the number 3 Electric Utilities company. Read this report to know the top competitors of NextEra Energy and identify growth and cost optimization opportunities of NextEra Energy

FirstEnergy (FE) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

FirstEnergy Corp with $15 billion revenues in the year 2016 was the number 4 Electric Utilities company. Read this report to know the top competitors of FirstEnergy and identify growth and cost optimization opportunities of FirstEnergy

NRG Energy (NRG) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

NRG Energy, Inc. with $12 billion revenues in the year 2016 was the number 6 Electric Utilities company. Read this report to know the top competitors of NRG Energy and identify growth and cost optimization opportunities of NRG Energy

Edison International (EIX) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Edison International with $12 billion revenues in the year 2016 was the number 7 Electric Utilities company. Read this report to know the top competitors of Edison International and identify growth and cost optimization opportunities of Edison International

Dominion Resources (D) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Dominion Resources Inc with $12 billion revenues in the year 2016 was the number 8 Electric Utilities company. Read this report to know the top competitors of Dominion Resources and identify growth and cost optimization opportunities of Dominion Resources

Revenues Analysis

AES (AES) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of AES Corp (AES) from 2012 to 2016. AES generated a total of $13.6 billion revenues during 2016. AES reported a revenue growth of -4% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

AES (AES) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of AES Corp (AES) from 2002 to 2016. AES generated a total of $13.6 billion revenues during 2016. AES reported a revenue growth of -4% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

AES (AES) Revenue Growth Comparison With Industry Growth From 2012 To...

This report provides a comparison of AES Corp (AES) revenue growth with Electric Utilities industry growth during the last five years from 2012 to 2016. AES reported a revenue growth of -4% year-over-year during 2016. The Electric Utilities industry growth was 0.2% year-over-year during 2016. AES growth was slower than the industry during 2016.

Profit Analysis

AES (AES) Net Profit And Net Margin From 2013 To 2016

This report provides the last four years net profit and net margin of AES Corp (AES) from 2013 to 2016. AES reported a total net income of -$1.1 billion during 2016. AES generated a total of $13.6 billion revenues during 2016. AES net profit margin was -8.4% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in December.

AES (AES) Net Profit And Net Margin From 2002 To 2016

This report provides the last fifteen years net profit and net margin of AES Corp (AES) from 2002 to 2016. AES reported a total net income of -$1.1 billion during 2016. AES generated a total of $1