Business Analysis of Arconic

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

Business Overview

Arconic Inc., formerly Alcoa Inc., is engaged in lightweight metals engineering and manufacturing. The Company operates through three segments: Global Rolled Products, Engineered Products and Solutions, and Transportation and Construction Solutions. Its multi-material products, which include aluminum, titanium and nickel, are used around the world in markets, such as aerospace, automotive, commercial transportation and packaging. The Global Rolled Products segment produces a range of aluminum sheet and plate products for the aerospace, automotive, commercial transportation, brazing and industrial markets. The Engineered Products and Solutions segment develops and manufactures products for the aerospace (commercial and defense), commercial transportation and power generation end markets. The Transportation and Construction Solutions segment produces products that are used in the non-residential building and construction and commercial transportation end markets.

Arconic

Arconic


R&P Rank: 228
Sector: Basic Materials
Industry:Metal Mining
H.Q Location:New York
Website: www.arconic.com
Company Address:
390 PARK AVENUE, NEW YORK NY 10022-4608
Ph:212-836-2732

Business Analysis of Arconic

The Basic Materials 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 Arconic 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 Arconic 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 Arconic with an interactive chart.

  1. Revenue Growth: Arconic reported a revenue growth of -0.2% year-on-year during 2016. Metal Mining Industry grew at -5.5% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Arconic spent 79.2% of its total revenues on COGS. Metal Mining industry average (COGS share of revenue) in the same period was 86.3%
  3. R&D share of Revenues: As a percentage of revenue, Arconic spent 1.1% of its total revenues on R&D. Metal Mining industry average R&D spending in the same period was 0.5%
  4. SG&A share of Revenues: As a percentage of revenue, Arconic spent 7.6% of its total revenues on Sales, Marketing, and General Administration (SG&A). Metal Mining industry average SG&A spending in the same period was 6.3%
  5. Inventory share of Revenues: As a percentage of revenue, Arconic spent 18.2% of its total revenues on Inventories. Metal Mining industry average Inventory spending in the same period was 20.9%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Arconic invested 15.3% of its total revenues on Accounts Payable (A/P) Metal Mining industry average Accounts Payable investment in the same period was 9.8%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Arconic invested 11.7% of its total revenues on Accounts Receivable (A/R). Metal Mining industry average Accounts Receivable investment in the same period was 10.1%
  8. PP&E share of Revenues: As a percentage of revenue, Arconic invested 44.4% of its total revenues on Property, Plants, and Equipments (PP&E). Metal Mining industry average PPE investment in the same period was 67.7%
  9. Intangibles share of Revenues: As a percentage of revenue, Arconic invested 41.5% of its total revenues on Intangibles. Metal Mining industry average Intangibles investment in the same period was 10.6%
  10. Net Margins: Arconic Net Margins in the year 2016 were -7.6%. Metal Mining industry average Net Margins in the same period were -3.7%

Sector and Industry Association of Arconic

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.

Arconic is associated with Basic Materials Sector and Metal Mining Industry.

Basic Materials sector is comprised of the following industries: Metal Mining; Coal Mining; Chemicals. The definitions for each of the industries is as follows:

  • Metal Mining industry includes companies primarily engaged in mining, developing mines, or exploring for precious metals such as Gold, Silver, Platinum and base metals such as Iron, Copper, Aluminum, Lead, and Zinc. It also includes companies that manufacture alloys such as steel.
  • Coal Mining industry includes companies engaged in the exploration for and/or mining of coal.
  • Chemicals industry includes companies that produce and/or distribute commodity and specialty chemicals. The companies manufacture three general classes of products: (1) basic chemicals, such as acids, alkalies, salts, and organic chemicals; (2) chemical products to be used in further manufacture, such as synthetic fibers, plastics materials, dry colors, and pigments; and (3) finished chemical products to be used as materials or supplies in other industries, such as paints, fertilizers, and explosives.

Industry Ranking of Arconic

With $12.4 billion revenues, Arconic ranked number 3 of all the companies in the US Metal Mining industry. There were a total of 34 public companies in the US Metal Mining industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Metal Mining industry by revenues during 2016 were:

  1. Nucor ($16.2 billion)
  2. Freeport-McMoRan ($14.8 billion)
  3. Arconic ($12.4 billion)
  4. United States Steel ($10.3 billion)
  5. Alcoa ($9.3 billion)
  6. Reliance Steel & Aluminum ($8.6 billion)
  7. Steel Dynamics ($7.8 billion)
  8. A-Mark Precious Metals ($6.8 billion)
  9. Newmont Mining ($6.7 billion)
  10. AK Steel Holding ($5.9 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 Arconicand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of arconic

Nucor (NUE) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Nucor Corp with $16 billion revenues in the year 2016 was the number 1 Metal Mining company. Read this report to know the top competitors of Nucor and identify growth and cost optimization opportunities of Nucor

Freeport-McMoRan (FCX) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Freeport-McMoRan Inc with $15 billion revenues in the year 2016 was the number 2 Metal Mining company. Read this report to know the top competitors of Freeport-McMoRan and identify growth and cost optimization opportunities of Freeport-McMoRan

United States Steel (X) Business Analysis – Analyze Historical Performance, Strategic...

United States Steel Corp with $10 billion revenues in the year 2016 was the number 4 Metal Mining company. Read this report to know the top competitors of United States Steel and identify growth and cost optimization opportunities of United States Steel

Alcoa (AA) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Alcoa Corp with $9 billion revenues in the year 2016 was the number 5 Metal Mining company. Read this report to know the top competitors of Alcoa and identify growth and cost optimization opportunities of Alcoa

Reliance Steel & Aluminum (RS) Business Analysis – Analyze Historical Performance,...

Reliance Steel & Aluminum Co with $9 billion revenues in the year 2016 was the number 6 Metal Mining company. Read this report to know the top competitors of Reliance Steel & Aluminum and identify growth and cost optimization opportunities of Reliance Steel & Aluminum

Steel Dynamics (STLD) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Steel Dynamics Inc with $8 billion revenues in the year 2016 was the number 7 Metal Mining company. Read this report to know the top competitors of Steel Dynamics and identify growth and cost optimization opportunities of Steel Dynamics

Revenues Analysis

Arconic (ARNC) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Arconic Inc. (ARNC) from 2012 to 2016. Arconic generated a total of $12.4 billion revenues during 2016. Arconic reported a revenue growth of -0.2% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Arconic (ARNC) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Arconic Inc. (ARNC) from 2002 to 2016. Arconic generated a total of $12.4 billion revenues during 2016. Arconic reported a revenue growth of -0.2% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Arconic (ARNC) Revenue Growth Comparison With Industry Growth From 2012 To...

This report provides a comparison of Arconic Inc. (ARNC) revenue growth with Metal Mining industry growth during the last five years from 2012 to 2016. Arconic reported a revenue growth of -0.2% year-over-year during 2016. The Metal Mining industry growth was -5.5% year-over-year during 2016. Arconic growth was faster than the industry during 2016.

Profit Analysis

Arconic (ARNC) Net Profit And Net Margin From 2012 To 2016

This report provides the last five years net profit and net margin of Arconic Inc. (ARNC) from 2012 to 2016. Arconic reported a total net income of -$941 million during 2016. Arconic generated a total of $12.4 billion revenues during 2016. Arconic net profit margin was -7.6% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in December.