Autoliv, Inc., through its subsidiaries, develops, manufactures, and supplies automotive safety systems to the automotive industry worldwide. It operates through two segments, Passive Safety and Electronics. The company offers a range of products, including modules and components for passenger and driver-side airbags, side-impact airbag protection systems, seatbelts, steering wheels, inflator technologies, whiplash protection systems, child seats, and components; and camera-based vision systems, night driving assists, automotive radars, brake controls, positioning systems, electronic control units, and other active safety systems, as well as passive safety electronic products, such as restraint electronics and crash sensors. It primarily serves car manufacturers. The company was founded in 1953 and is headquartered in Stockholm, Sweden.
Business Analysis of Autoliv
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 Autoliv 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 Autoliv 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 Autoliv with an interactive chart.
- Revenue Growth: Autoliv reported a revenue growth of 9.9% year-on-year during 2016. Auto Parts Industry grew at 1.1% in the same period
- COGS share of Revenues: As a percentage of revenue, Autoliv spent 79.6% of its total revenues on COGS. Auto Parts industry average (COGS share of revenue) in the same period was 74.6%
- R&D share of Revenues: As a percentage of revenue, Autoliv spent 6.5% of its total revenues on R&D. Auto Parts industry average R&D spending in the same period was 0.6%
- SG&A share of Revenues: As a percentage of revenue, Autoliv spent 4.7% 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%
- Inventory share of Revenues: As a percentage of revenue, Autoliv spent 7.7% of its total revenues on Inventories. Auto Parts industry average Inventory spending in the same period was 14.7%
- Accounts Payable share of Revenues: As a percentage of revenue, Autoliv invested 11.9% of its total revenues on Accounts Payable (A/P) Auto Parts industry average Accounts Payable investment in the same period was 17.5%
- Accounts Receivable share of Revenues: As a percentage of revenue, Autoliv invested 19.5% of its total revenues on Accounts Receivable (A/R). Auto Parts industry average Accounts Receivable investment in the same period was 12.8%
- PP&E share of Revenues: As a percentage of revenue, Autoliv invested 16.5% of its total revenues on Property, Plants, and Equipments (PP&E). Auto Parts industry average PPE investment in the same period was 21.0%
- Intangibles share of Revenues: As a percentage of revenue, Autoliv invested 20.7% of its total revenues on Intangibles. Auto Parts industry average Intangibles investment in the same period was 14.2%
- Net Margins: Autoliv Net Margins in the year 2016 were 5.6%. Auto Parts industry average Net Margins in the same period were 5.3%
Sector and Industry Association of Autoliv
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.
Autoliv 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 Autoliv
With $10.1 billion revenues, Autoliv ranked number 7 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:
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.