Business Analysis of Asbury Automotive Group

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Asbury Automotive Group

ASBURY AUTOMOTIVE GROUP

Business Overview

Asbury Automotive Group, Inc. operates as an automotive retailer in the United States. It offers a range of automotive products and services, including new and used vehicles; and vehicle repair and maintenance, replacement parts, and collision repair services. The company also provides finance and insurance products, including arranging vehicle financing through third parties; and aftermarket products, such as extended service contracts, guaranteed asset protection insurance, prepaid maintenance, and credit life and disability insurance. As of December 31, 2016, the company owned and operated 93 new vehicle franchises representing 28 brands of automobiles at 77 dealership locations, and 23 collision centers in the United States. It also owned and operated three stand-alone used vehicle stores in Florida. Asbury Automotive Group, Inc. was founded in 1995 and is headquartered in Duluth, Georgia.

Asbury Automotive Group

Asbury Automotive Group


R&P Rank: 418
Sector: Retail
Industry:Specialty Retail
H.Q Location:Georgia
Website: www.asburyauto.com
Company Address:
2905 PREMIERE PARKWAY NW, SUITE 300, DULUTH GA 30097
Ph:770-418-8200

Business Analysis of Asbury Automotive Group

The Retail 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 Asbury Automotive Group 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 Asbury Automotive Group 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 Asbury Automotive Group with an interactive chart.

  1. Revenue Growth: Asbury Automotive Group reported a revenue growth of -0.9% year-on-year during 2016. Specialty Retail Industry grew at -1.6% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Asbury Automotive Group spent 83.8% of its total revenues on COGS. Specialty Retail industry average (COGS share of revenue) in the same period was 76.8%
  3. R&D share of Revenues: Asbury Automotive Group 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, Asbury Automotive Group spent 11.2% of its total revenues on Sales, Marketing, and General Administration (SG&A). Specialty Retail industry average SG&A spending in the same period was 16.8%
  5. Inventory share of Revenues: As a percentage of revenue, Asbury Automotive Group spent 13.7% of its total revenues on Inventories. Specialty Retail industry average Inventory spending in the same period was 13.8%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Asbury Automotive Group invested 4.7% of its total revenues on Accounts Payable (A/P) Specialty Retail industry average Accounts Payable investment in the same period was 7.5%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Asbury Automotive Group invested 2.1% of its total revenues on Accounts Receivable (A/R). Specialty Retail industry average Accounts Receivable investment in the same period was 8.4%
  8. PP&E share of Revenues: As a percentage of revenue, Asbury Automotive Group invested 12.5% of its total revenues on Property, Plants, and Equipments (PP&E). Specialty Retail industry average PPE investment in the same period was 11.9%
  9. Intangibles share of Revenues: As a percentage of revenue, Asbury Automotive Group invested 2.7% of its total revenues on Intangibles. Specialty Retail industry average Intangibles investment in the same period was 7.2%
  10. Net Margins: Asbury Automotive Group Net Margins in the year 2016 were 2.6%. Specialty Retail industry average Net Margins in the same period were 2.7%

Sector and Industry Association of Asbury Automotive Group

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.

Asbury Automotive Group is associated with Retail Sector and Specialty Retail Industry.

Retail sector is comprised of the following industries: Broadline Retail; Grocery Retail; Specialty Retail; Apparel Retail; Home Improvement Retail; Specialized Consumer Services. The definitions for each of the industries is as follows:

  • Broadline Retail industry includes retail outlets and wholesalers offering a wide variety of products including both hard goods and soft goods.
  • Grocery Retail industry includes retail stores that primarily offer non-perishable food that is packaged in cans, bottles and boxes, with some also having fresh produce, butchers, delis, and bakeries
  • Specialty Retail industry includes retailers and wholesalers concentrating on a Single Class of Goods, such as electronics, books, automotive parts or closeouts. It also includes automobile dealerships, video rental stores, dollar stores, duty-free shops and automotive fuel stations not owned by oil companies.
  • Apparel Retail industry consists of retailers and wholesalers specializing mainly in Clothing, Shoes, Jewelry, Sunglasses and Other accessories.
  • Home Improvement Retail industry includes retailers and wholesalers concentrating on the sale of home improvement products, including Garden Equipment, Carpets, Wallpaper, Paint, Home Furniture, Blinds and Curtains, and Building materials.
  • Specialized Consumer Services industry includes providers of consumer services such as Auction Houses, Day-care Centers, Dry Cleaners, Schools, Consumer Rental Companies, Veterinary Clinics, Hair Salons and providers of Funeral, Lawn-maintenance, Consumer-storage, Heating and Cooling installation and Plumbing services.

Industry Ranking of Asbury Automotive Group

With $6.5 billion revenues, Asbury Automotive Group ranked number 15 of all the companies in the US Specialty Retail industry. There were a total of 50 public companies in the US Specialty Retail industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Specialty Retail industry by revenues during 2016 were:

  1. Best Buy ($39.5 billion)
  2. AutoNation ($21.6 billion)
  3. Penske Automotive Group ($20.1 billion)
  4. Staples ($18.8 billion)
  5. CarMax ($15.1 billion)
  6. Murphy USA ($11.6 billion)
  7. CST Brands ($11.1 billion)
  8. Office Depot ($11 billion)
  9. Group 1 Automotive ($10.9 billion)
  10. Sonic Automotive ($9.7 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 Asbury Automotive Groupand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of asbury-automotive-group

Lithia Motors (LAD) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Lithia Motors Inc with $9 billion revenues in the year 2016 was the number 12 Specialty Retail company. Read this report to know the top competitors of Lithia Motors and identify growth and cost optimization opportunities of Lithia Motors

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Dick's Sporting Goods Inc with $7 billion revenues in the year 2016 was the number 13 Specialty Retail company. Read this report to know the top competitors of Dick's Sporting Goods and identify growth and cost optimization opportunities of Dick's Sporting Goods

Tractor Supply (TSCO) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Tractor Supply Co with $7 billion revenues in the year 2016 was the number 14 Specialty Retail company. Read this report to know the top competitors of Tractor Supply and identify growth and cost optimization opportunities of Tractor Supply

TravelCenters of America (TA) Business Analysis – Analyze Historical Performance, Strategic...

TravelCenters Of America Llc with $6 billion revenues in the year 2016 was the number 16 Specialty Retail company. Read this report to know the top competitors of TravelCenters of America and identify growth and cost optimization opportunities of TravelCenters of America

Michael Kors Holdings (KORS) Business Analysis – Analyze Historical Performance, Strategic...

Michael Kors Holdings Ltd with $5 billion revenues in the year 2016 was the number 17 Specialty Retail company. Read this report to know the top competitors of Michael Kors Holdings and identify growth and cost optimization opportunities of Michael Kors Holdings

Rush Enterprises (RUSHA) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Rush Enterprises Inc with $4 billion revenues in the year 2016 was the number 18 Specialty Retail company. Read this report to know the top competitors of Rush Enterprises and identify growth and cost optimization opportunities of Rush Enterprises

Revenues Analysis

Asbury Automotive Group (ABG) Revenues And Revenue Growth From 2012 To...

This report provides the last five years revenues and revenue growth of Asbury Automotive Group Inc (ABG) from 2012 to 2016. Asbury Automotive Group generated a total of $6.5 billion revenues during 2016. Asbury Automotive Group reported a revenue growth of -0.9% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Asbury Automotive Group (ABG) Revenues And Revenue Growth From 2002 To...

This report provides the last fifteen years revenues and revenue growth of Asbury Automotive Group Inc (ABG) from 2002 to 2016. Asbury Automotive Group generated a total of $6.5 billion revenues during 2016. Asbury Automotive Group reported a revenue growth of -0.9% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Asbury Automotive Group (ABG) Revenue Growth Comparison With Industry Growth From...

This report provides a comparison of Asbury Automotive Group Inc (ABG) revenue growth with Specialty Retail industry growth during the last five years from 2012 to 2016. Asbury Automotive Group reported a revenue growth of -0.9% year-over-year during 2016. The Specialty Retail industry growth was -1.6% year-over-year during 2016. Asbury Automotive Group growth was faster than the industry during 2016.