Business Analysis of BlackRock

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

BLACKROCK

Business Overview

BlackRock, Inc. is a publicly owned investment manager. The firm primarily provides its services to institutional, intermediary, and individual investors including corporate, public, union, and industry pension plans, insurance companies, third-party mutual funds, endowments, public institutions, governments, foundations, charities, sovereign wealth funds, corporations, official institutions, and banks. It also provides global risk management and advisory services. The firm manages separate client-focused equity, fixed income, and balanced portfolios. It also launches and manages open-end and closed-end mutual funds, offshore funds, unit trusts, and alternative investment vehicles including structured funds. The firm launches equity, fixed income, balanced, and real estate mutual funds. It also launches equity, fixed income, balanced, currency, commodity, and multi-asset exchange traded funds. The firm also launches and manages hedge funds. It invests in the public equity, fixed income, real estate, currency, commodity, and alternative markets across the globe. The firm primarily invests in growth and value stocks of small-cap, mid-cap, SMID-cap, large-cap, and multi-cap companies. It also invests in dividend-paying equity securities. The firm invests in investment grade municipal securities, government securities including securities issued or guaranteed by a government or a government agency or instrumentality, corporate bonds, and asset-backed and mortgage-backed securities. It employs fundamental and quantitative analysis with a focus on bottom-up and top-down approach to make its investments. The firm employs liquidity, asset allocation, balanced, real estate, and alternative strategies to make its investments. In real estate sector, it seeks to invest in Poland and Germany. The firm benchmarks the performance of its portfolios against various S&P, Russell, Barclays, MSCI, Citigroup, and Merrill Lynch indices. BlackRock, Inc. was founded in 1988 and is based in New York City with additional offices in Boston, Massachusetts; London, United Kingdom; Brazil; Philadelphia, Pennsylvania; Plainsboro, New Jersey; and San Francisco, California.

BlackRock

BlackRock


R&P Rank: 260
Sector: Financial Services
Industry:Investment Services
H.Q Location:New York
Website: www.blackrock.com
Company Address:
55 EAST 52ND STREET, NEW YORK NY 10055
Ph:212-810-5300

Business Analysis of BlackRock

The Financial Services 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 BlackRock 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 BlackRock 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 BlackRock with an interactive chart.

  1. Revenue Growth: BlackRock reported a revenue growth of -2.2% year-on-year during 2016. Investment Services Industry grew at -6.5% in the same period
  2. COGS share of Revenues: As a percentage of revenue, BlackRock spent 11.0% of its total revenues on COGS. Investment Services industry average (COGS share of revenue) in the same period was 10.0%
  3. R&D share of Revenues: BlackRock 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, BlackRock spent 46.4% of its total revenues on Sales, Marketing, and General Administration (SG&A). Investment Services industry average SG&A spending in the same period was 54.3%
  5. Inventory share of Revenues: BlackRock Inventory share of Revenues details are not available because either company does not share the data or we do not have it
  6. Accounts Payable share of Revenues: As a percentage of revenue, BlackRock invested 9.8% of its total revenues on Accounts Payable (A/P) Investment Services industry average Accounts Payable investment in the same period was 214.5%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, BlackRock invested 21.1% of its total revenues on Accounts Receivable (A/R). Investment Services industry average Accounts Receivable investment in the same period was 79.0%
  8. PP&E share of Revenues: As a percentage of revenue, BlackRock invested 5.0% of its total revenues on Property, Plants, and Equipments (PP&E). Investment Services industry average PPE investment in the same period was 6.6%
  9. Intangibles share of Revenues: As a percentage of revenue, BlackRock invested 273.2% of its total revenues on Intangibles. Investment Services industry average Intangibles investment in the same period was 74.6%
  10. Net Margins: BlackRock Net Margins in the year 2016 were 28.4%. Investment Services industry average Net Margins in the same period were 17.8%

Sector and Industry Association of BlackRock

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.

BlackRock is associated with Financials Sector Group, Financial Services Sector, and Investment Services Industry.

Financial Services sector is comprised of the following industries: Investment Services; Consumer Finance; Payment and Transaction Processing Services; Financial News, Research and Data. The definitions for each of the industries is as follows:

  • Investment Services industry includes investment banking companies, asset management companies, securities brokers and dealers, online brokers, and security/commodity exchanges.
  • Consumer Finance industry includes companies providing credit services and mortgage finance services.
  • Payment and Transaction Processing Services industry includes companies providing financial news, research, and data services.
  • Financial News, Research and Data industry includes companies providing payments and transaction processing services.

Industry Ranking of BlackRock

With $11.2 billion revenues, BlackRock ranked number 6 of all the companies in the US Investment Services industry. There were a total of 143 public companies in the US Investment Services industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Investment Services industry by revenues during 2016 were:

  1. Morgan Stanley ($34.6 billion)
  2. Goldman Sachs ($30.6 billion)
  3. Bank Of New York Mellon ($15.2 billion)
  4. INTL FCStone ($14.8 billion)
  5. Ameriprise Financial ($11.7 billion)
  6. BlackRock ($11.2 billion)
  7. State Street ($10.2 billion)
  8. Charles Schwab ($7.5 billion)
  9. Franklin Templeton Investments ($6.6 billion)
  10. Intercontinental Exchange ($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 BlackRockand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of blackrock

Bank Of New York Mellon (BK) Business Analysis – Analyze Historical...

Bank Of New York Mellon Corp with $15 billion revenues in the year 2016 was the number 3 Investment Services company. Read this report to know the top competitors of Bank Of New York Mellon and identify growth and cost optimization opportunities of Bank Of New York Mellon

INTL FCStone (INTL) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

INTL FCStone Inc. with $15 billion revenues in the year 2016 was the number 4 Investment Services company. Read this report to know the top competitors of INTL FCStone and identify growth and cost optimization opportunities of INTL FCStone

Ameriprise Financial (AMP) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Ameriprise Financial Inc with $12 billion revenues in the year 2016 was the number 5 Investment Services company. Read this report to know the top competitors of Ameriprise Financial and identify growth and cost optimization opportunities of Ameriprise Financial

State Street (STT) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

State Street Corp with $10 billion revenues in the year 2016 was the number 7 Investment Services company. Read this report to know the top competitors of State Street and identify growth and cost optimization opportunities of State Street

Charles Schwab (SCHW) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Charles Schwab Corp with $7 billion revenues in the year 2016 was the number 8 Investment Services company. Read this report to know the top competitors of Charles Schwab and identify growth and cost optimization opportunities of Charles Schwab

Franklin Templeton Investments (BEN) Business Analysis – Analyze Historical Performance, Strategic...

Franklin Resources Inc with $7 billion revenues in the year 2016 was the number 9 Investment Services company. Read this report to know the top competitors of Franklin Templeton Investments and identify growth and cost optimization opportunities of Franklin Templeton Investments

Revenues Analysis

BlackRock (BLK) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of BlackRock Inc. (BLK) from 2012 to 2016. BlackRock generated a total of $11.2 billion revenues during 2016. BlackRock reported a revenue growth of -2.2% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

BlackRock (BLK) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of BlackRock Inc. (BLK) from 2002 to 2016. BlackRock generated a total of $11.2 billion revenues during 2016. BlackRock reported a revenue growth of -2.2% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

BlackRock (BLK) Revenue Growth Comparison With Industry Growth From 2012 To...

This report provides a comparison of BlackRock Inc. (BLK) revenue growth with Investment Services industry growth during the last five years from 2012 to 2016. BlackRock reported a revenue growth of -2.2% year-over-year during 2016. The Investment Services industry growth was -6.5% year-over-year during 2016. BlackRock growth was faster than the industry during 2016.

Profit Analysis

BlackRock (BLK) Net Profit And Net Margin From 2012 To 2016

This report provides the last five years net profit and net margin of BlackRock Inc. (BLK) from 2012 to 2016. BlackRock reported a total net income of $3.2 billion during 2016. BlackRock generated a total of $11.2 billion revenues during 2016. BlackRock net profit margin was 28.4% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in December.