Business Analysis of Consolidated Edison

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Consolidated Edison

CONSOLIDATED EDISON

Business Overview

Consolidated Edison, Inc., through its subsidiaries, engages in regulated electric, gas, and steam delivery businesses in the United States. The company offers electric services to approximately 3.4 million customers in New York City and Westchester County; gas to approximately 1.1 million customers in Manhattan, the Bronx, parts of Queens, and Westchester County; and steam to approximately 1,649 customers in parts of Manhattan. It also supplies electricity to approximately 0.3 million customers in southeastern New York, and northern New Jersey; and gas to approximately 0.1 million customers in southeastern New York. The company operates 532 circuit miles of transmission lines; 15 transmission substations; 62 distribution substations; 85,514 in-service line transformers; 3,913 pole miles of overhead distribution lines; and 1,764 miles of underground distribution lines, as well as 1,865 miles of mains and 104,748 service lines for natural gas distribution. In addition, it owns, operates, and develops renewable and energy infrastructure projects; and provides energy-related products and services to wholesale and retail customers, as well as invests in electric and gas transmission projects. It primarily sells electricity to industrial, commercial, residential, and governmental customers. Consolidated Edison, Inc. was founded in 1884 and is based in New York, New York.

Consolidated Edison

Consolidated Edison


R&P Rank: 235
Sector: Utilities
Industry:Gas, Water, & Multiutilities
H.Q Location:New York
Website: www.coned.com
Company Address:
4 IRVING PLACE, NEW YORK NY 10003
Ph:800-522-5635

Business Analysis of Consolidated Edison

The Utilities 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 Consolidated Edison 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 Consolidated Edison 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 Consolidated Edison with an interactive chart.

  1. Revenue Growth: Consolidated Edison reported a revenue growth of -3.8% year-on-year during 2016. Gas, Water, & Multiutilities Industry grew at -0.4% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Consolidated Edison spent 52.7% of its total revenues on COGS. Gas, Water, & Multiutilities industry average (COGS share of revenue) in the same period was 63.9%
  3. R&D share of Revenues: Consolidated Edison 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: Consolidated Edison SG&A share of Revenues details are not available because either company does not share the data or we do not have it
  5. Inventory share of Revenues: As a percentage of revenue, Consolidated Edison spent 2.8% of its total revenues on Inventories. Gas, Water, & Multiutilities industry average Inventory spending in the same period was 7.3%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Consolidated Edison invested 9.5% of its total revenues on Accounts Payable (A/P) Gas, Water, & Multiutilities industry average Accounts Payable investment in the same period was 11.4%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Consolidated Edison invested 14.5% of its total revenues on Accounts Receivable (A/R). Gas, Water, & Multiutilities industry average Accounts Receivable investment in the same period was 15.4%
  8. PP&E share of Revenues: As a percentage of revenue, Consolidated Edison invested 291.6% of its total revenues on Property, Plants, and Equipments (PP&E). Gas, Water, & Multiutilities industry average PPE investment in the same period was 281.2%
  9. Intangibles share of Revenues: As a percentage of revenue, Consolidated Edison invested 4.6% of its total revenues on Intangibles. Gas, Water, & Multiutilities industry average Intangibles investment in the same period was 23.2%
  10. Net Margins: Consolidated Edison Net Margins in the year 2016 were 10.3%. Gas, Water, & Multiutilities industry average Net Margins in the same period were 8.6%

Sector and Industry Association of Consolidated Edison

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.

Consolidated Edison is associated with Utilities Sector and Gas, Water, & Multiutilities Industry.

Utilities sector is comprised of the following industries: Electric Utilities; Gas, Water, & Multiutlities. The definitions for each of the industries is as follows:

  • Electric Utilities industry includes companies engaged in generation, transmission, and/or distribution of electric energy for sale.
  • Gas, Water, & Multiutlities industry includes companies engaged in transmission and/or storage of natural gas for sale and those engaged in distributing water for sale for domestic, commercial, and industrial use. It also includes companies with significant presence in more than one utility.

Industry Ranking of Consolidated Edison

With $12.1 billion revenues, Consolidated Edison ranked number 4 of all the companies in the US Gas, Water, & Multiutilities industry. There were a total of 47 public companies in the US Gas, Water, & Multiutilities industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Gas, Water, & Multiutilities industry by revenues during 2016 were:

  1. Exelon ($31.4 billion)
  2. Duke Energy ($22.7 billion)
  3. PG&E ($17.7 billion)
  4. Consolidated Edison ($12.1 billion)
  5. Xcel Energy ($11.1 billion)
  6. Sempra Energy ($10.2 billion)
  7. Public Service Enterprise Group ($9.1 billion)
  8. WEC Energy Group ($7.5 billion)
  9. CMS Energy ($6.4 billion)
  10. Ameren ($6.1 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 Consolidated Edisonand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of consolidated-edison

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

Exelon Corp with $31 billion revenues in the year 2016 was the number 1 Gas, Water, & Multiutilities company. Read this report to know the top competitors of Exelon and identify growth and cost optimization opportunities of Exelon

Duke Energy (DUK) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Duke Energy Corp with $23 billion revenues in the year 2016 was the number 2 Gas, Water, & Multiutilities company. Read this report to know the top competitors of Duke Energy and identify growth and cost optimization opportunities of Duke Energy

PG&E (PCG) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

PG&E Corp with $18 billion revenues in the year 2016 was the number 3 Gas, Water, & Multiutilities company. Read this report to know the top competitors of PG&E and identify growth and cost optimization opportunities of PG&E

Xcel Energy (XEL) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Xcel Energy Inc with $11 billion revenues in the year 2016 was the number 5 Gas, Water, & Multiutilities company. Read this report to know the top competitors of Xcel Energy and identify growth and cost optimization opportunities of Xcel Energy

Sempra Energy (SRE) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Sempra Energy with $10 billion revenues in the year 2016 was the number 6 Gas, Water, & Multiutilities company. Read this report to know the top competitors of Sempra Energy and identify growth and cost optimization opportunities of Sempra Energy

Public Service Enterprise Group (PEG) Business Analysis – Analyze Historical Performance,...

Public Service Enterprise Group Inc with $9 billion revenues in the year 2016 was the number 7 Gas, Water, & Multiutilities company. Read this report to know the top competitors of Public Service Enterprise Group and identify growth and cost optimization opportunities of Public Service Enterprise Group

Revenues Analysis

Consolidated Edison (ED) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Consolidated Edison Inc (ED) from 2012 to 2016. Consolidated Edison generated a total of $12.1 billion revenues during 2016. Consolidated Edison reported a revenue growth of -3.8% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Consolidated Edison (ED) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Consolidated Edison Inc (ED) from 2002 to 2016. Consolidated Edison generated a total of $12.1 billion revenues during 2016. Consolidated Edison reported a revenue growth of -3.8% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Consolidated Edison (ED) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of Consolidated Edison Inc (ED) revenue growth with Gas, Water, & Multiutilities industry growth during the last five years from 2012 to 2016. Consolidated Edison reported a revenue growth of -3.8% year-over-year during 2016. The Gas, Water, & Multiutilities industry growth was -0.4% year-over-year during 2016. Consolidated Edison growth was slower than the industry during 2016.

Profit Analysis

Consolidated Edison (ED) Net Profit And Net Margin From 2012 To...

This report provides the last five years net profit and net margin of Consolidated Edison Inc (ED) from 2012 to 2016. Consolidated Edison reported a total net income of $1.2 billion during 2016. Consolidated Edison generated a total of $12.1 billio