Business Analysis of Avnet

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

Business Overview

Avnet, Inc., together with its subsidiaries, distributes electronic components worldwide. The company operates through two segments, Electronic Components and Premier Farnell. The Electronic Components segment markets and sells semiconductors; electronic components, including interconnect, passive and electromechanical devices; and other integrated components from electronic component manufacturers. This segment also offers customer support services, which facilitate customers to evaluate, design-in, and procure electronic components throughout the lifecycle of their technology products and systems. In addition, it provides integrated solutions, such as technical design, integration, and assembly of embedded products, systems, and solutions primarily for industrial applications, as well as for intelligent embedded and innovative display solutions comprising touch and passive displays. Further, it develops and manufactures standard board and industrial subsystems, and application-specific devices that enable it to produce systems tailored to specific customer requirements. Additionally, this segment offers design chain support that provides engineers with technical design solutions; engineering and technical resources to support product design, bill of materials development, and technical education and training; and supply chain solutions that provide support and logistical services to original equipment manufacturers, electronic manufacturing service providers, and electronic component manufacturers. It serves various markets, including automotive, communications, computer hardware and peripherals, industrial and manufacturing, medical equipment, and defense and aerospace. The Premier Farnell segment distributes electronic components primarily to support design engineers, maintenance and test engineers, makers, and entrepreneurs. Avnet, Inc. was founded in 1921 and is headquartered in Phoenix, Arizona.

Avnet

Avnet


R&P Rank: 103
Sector: Technology
Industry:Other
H.Q Location:Arizona
Website: www.avnet.com
Company Address:
2211 SOUTH 47TH STREET, PHOENIX AZ 85034
Ph:480-643-2000

Business Analysis of Avnet

The Technology 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 Avnet 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 Avnet 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 Avnet with an interactive chart.

  1. Revenue Growth: Avnet reported a revenue growth of -6.1% year-on-year during 2016. Other Industry grew at 0.0% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Avnet spent 88.4% of its total revenues on COGS. Other industry average (COGS share of revenue) in the same period was 80.7%
  3. R&D share of Revenues: Avnet 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, Avnet spent 8.3% of its total revenues on Sales, Marketing, and General Administration (SG&A). Other industry average SG&A spending in the same period was 10.3%
  5. Inventory share of Revenues: As a percentage of revenue, Avnet spent 9.8% of its total revenues on Inventories. Other industry average Inventory spending in the same period was 10.4%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Avnet invested 6.1% of its total revenues on Accounts Payable (A/P) Other industry average Accounts Payable investment in the same period was 13.2%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Avnet invested 10.6% of its total revenues on Accounts Receivable (A/R). Other industry average Accounts Receivable investment in the same period was 15.6%
  8. PP&E share of Revenues: As a percentage of revenue, Avnet invested 1.7% of its total revenues on Property, Plants, and Equipments (PP&E). Other industry average PPE investment in the same period was 13.4%
  9. Intangibles share of Revenues: As a percentage of revenue, Avnet invested 2.5% of its total revenues on Intangibles. Other industry average Intangibles investment in the same period was 22.4%
  10. Net Margins: Avnet Net Margins in the year 2016 were 1.9%. Other industry average Net Margins in the same period were 4.6%

Sector and Industry Association of Avnet

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.

Avnet is associated with Technology Sector and Technology-Other Industry.

Technology sector is comprised of the following industries: Computers Systems and Peripherals; Software; Semiconductor; IT Consulting and Outsourcing Services; Networking Equipment and Services; Internet; Other. The definitions for each of the industries is as follows:

  • Computers Systems and Peripherals industry includes companies primarily engaged in manufacturing of personal computers, servers, mainframes, workstations, and other computer accessories and peripherals such as storage drives, mice, keyboards and printers. It also includes manufacturers of mobile phones and tablets.
  • Software industry includes businesses providing software products such as operating systems, productivity suites, enterprise software, data and analysis software, advertising and marketing software, engineering and manufacturing software, networking software, and IT management software. It also includes companies providing industry-specific software focused on different sectors such as Financials, Automotive, Telecom, Utilities, Travel, Real Estate, Media, and Publishing.
  • Semiconductor industry includes companies primarily engaged in manufacturing and distribution of semiconductor products such as microprocessors, chipsets, motherboards, flash memory, and wired and wireless connectivity products. It also includes companies that provide semiconductor equipment and services to the semiconductor industry.
  • IT Consulting and Outsourcing Services industry includes companies primarily engaged in providing information technology consulting and outsourcing services to other businesses. The services include IT consulting, systems integration, application development and management, IT infrastructure management, and network operations management.
  • Networking Equipment and Services industry includes companies primarily engaged in manufacturing and distribution of networking and communications equipment for transporting data, voice, and video traffic across intranets, extranets, and the Internet. The key products include routers and switches for local and wide-area networks, cable modems, teleconferencing equipment, and wireless access points.
  • Internet industry includes Internet-based businesses providing products and services such as search engines, social networking, web hosting, email, domain name registration, and eCommerce. It also includes industry information/services portals focused on different sectors such as Financials, Automotive, Travel, Health, Real Estate, Media, and Publishing.
  • Other industry includes companies providing products such as photocopiers, fax machines, point of sale machines, audio/video technologies, and video games. It also includes technology companies that are not part of other six technology industries.

Industry Ranking of Avnet

With $26.2 billion revenues, Avnet ranked number 2 of all the companies in the US Technology-Other industry. There were a total of 44 public companies in the US Technology-Other industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Technology-Other industry by revenues during 2016 were:

  1. Tech Data ($26.4 billion)
  2. Avnet ($26.2 billion)
  3. Flex ($24.4 billion)
  4. Arrow Electronics ($23.8 billion)
  5. Jabil Circuit ($18.4 billion)
  6. SYNNEX ($14.1 billion)
  7. CDW ($14 billion)
  8. TE Connectivity ($12.2 billion)
  9. Xerox ($10.8 billion)
  10. Corning ($9.4 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 Avnetand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of avnet

Tech Data (TECD) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Tech Data Corp with $26 billion revenues in the year 2016 was the number 1 Other company. Read this report to know the top competitors of Tech Data and identify growth and cost optimization opportunities of Tech Data

Flex (FLEX) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Flex Ltd. with $24 billion revenues in the year 2016 was the number 3 Other company. Read this report to know the top competitors of Flex and identify growth and cost optimization opportunities of Flex

Arrow Electronics (ARW) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Arrow Electronics Inc with $24 billion revenues in the year 2016 was the number 4 Other company. Read this report to know the top competitors of Arrow Electronics and identify growth and cost optimization opportunities of Arrow Electronics

Jabil Circuit (JBL) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Jabil Circuit Inc with $18 billion revenues in the year 2016 was the number 5 Other company. Read this report to know the top competitors of Jabil Circuit and identify growth and cost optimization opportunities of Jabil Circuit

SYNNEX (SNX) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

SYNNEX CORP with $14 billion revenues in the year 2016 was the number 6 Other company. Read this report to know the top competitors of SYNNEX and identify growth and cost optimization opportunities of SYNNEX

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

CDW Corp with $14 billion revenues in the year 2016 was the number 7 Other company. Read this report to know the top competitors of CDW and identify growth and cost optimization opportunities of CDW

Revenues Analysis

Avnet (AVT) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Avnet Inc (AVT) from 2012 to 2016. Avnet generated a total of $26.2 billion revenues during 2016. Avnet reported a revenue growth of -6.1% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in June.

Avnet (AVT) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Avnet Inc (AVT) from 2002 to 2016. Avnet generated a total of $26.2 billion revenues during 2016. Avnet reported a revenue growth of -6.1% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in June.

Avnet (AVT) Revenue Growth Comparison With Industry Growth From 2012 To...

This report provides a comparison of Avnet Inc (AVT) revenue growth with Technology-Other industry growth during the last five years from 2012 to 2016. Avnet reported a revenue growth of -6.1% year-over-year during 2016. The Technology-Other industry growth was 0% year-over-year during 2016. Avnet growth was slower than the industry during 2016.

Profit Analysis

Avnet (AVT) Net Profit And Net Margin From 2012 To 2016

This report provides the last five years net profit and net margin of Avnet Inc (AVT) from 2012 to 2016. Avnet reported a total net income of $506.5 million during 2016. Avnet generated a total of $26.2 billion revenues d