Business Analysis of Duke Energy

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Duke Energy

DUKE ENERGY

Business Overview

Duke Energy Corporation, together with its subsidiaries, operates as an energy company in the United States. It operates through three segments: Electric Utilities and Infrastructure, Gas Utilities and Infrastructure, and Commercial Renewables. The Electric Utilities and Infrastructure segment generates, transmits, distributes, and sells electricity in the Carolinas, Florida, and the Midwest; uses coal, hydroelectric, natural gas, oil, renewable generation, and nuclear fuel to generate electricity; and engages in the wholesale of electricity to municipalities, electric cooperative utilities, and other load-serving entities. This segment serves approximately 7.5 million retail electric customers in 6 states in the Southeast and Midwest regions of the United States covering a service territory of approximately 95,000 square miles; and owns approximately 49,300 megawatts (MW) of generation capacity. The Gas Utilities and Infrastructure segment distributes natural gas to residential, commercial, industrial, and power generation natural gas customers; and owns, operates, and invests in various pipeline transmission and natural gas storage facilities. It has approximately 1.5 million customers, including 1 million customers located in North Carolina, South Carolina, and Tennessee, and as well as 529,000 customers located in southwestern Ohio and northern Kentucky. The Commercial Renewables segment acquires, builds, develops, and operates wind and solar renewable generation projects, including nonregulated renewable energy and energy storage services to utilities, electric cooperatives, municipalities, and commercial and industrial customers. This segment has 21 wind farms and 63 commercial solar farms with a capacity of 2,900 MW across 14 states. The company was formerly known as Duke Energy Holding Corp. and changed its name to Duke Energy Corporation in April 2005. Duke Energy Corporation was incorporated in 2005 and is headquartered in Charlotte, North Carolina.

Duke Energy

Duke Energy


R&P Rank: 121
Sector: Utilities
Industry:Gas, Water, & Multiutilities
H.Q Location:North Carolina
Website: www.duke-energy.com
Company Address:
550 SOUTH TRYON STREET, DEC45, CHARLOTTE NC 28202
Ph:704-382-3853

Business Analysis of Duke Energy

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 Duke Energy 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 Duke Energy 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 Duke Energy with an interactive chart.

  1. Revenue Growth: Duke Energy reported a revenue growth of 1.7% 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, Duke Energy spent 62.1% 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: Duke Energy 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: Duke Energy 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, Duke Energy spent 15.5% 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, Duke Energy invested 13.2% 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, Duke Energy invested 3.3% 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, Duke Energy invested 362.8% 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, Duke Energy invested 85.4% of its total revenues on Intangibles. Gas, Water, & Multiutilities industry average Intangibles investment in the same period was 23.2%
  10. Net Margins: Duke Energy Net Margins in the year 2016 were 9.5%. Gas, Water, & Multiutilities industry average Net Margins in the same period were 8.6%

Sector and Industry Association of Duke Energy

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.

Duke Energy 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 Duke Energy

With $22.7 billion revenues, Duke Energy ranked number 2 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 Duke Energyand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of duke-energy

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

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

Consolidated Edison (ED) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Consolidated Edison Inc with $12 billion revenues in the year 2016 was the number 4 Gas, Water, & Multiutilities company. Read this report to know the top competitors of Consolidated Edison and identify growth and cost optimization opportunities of Consolidated Edison

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

Duke Energy (DUK) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Duke Energy Corp (DUK) from 2012 to 2016. Duke Energy generated a total of $22.7 billion revenues during 2016. Duke Energy reported a revenue growth of 1.7% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Duke Energy (DUK) Revenues And Revenue Growth From 2004 To 2016

This report provides the last thirteen years revenues and revenue growth of Duke Energy Corp (DUK) from 2004 to 2016. Duke Energy generated a total of $22.7 billion revenues during 2016. Duke Energy reported a revenue growth of 1.7% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Duke Energy (DUK) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of Duke Energy Corp (DUK) revenue growth with Gas, Water, & Multiutilities industry growth during the last five years from 2012 to 2016. Duke Energy reported a revenue growth of 1.7% year-over-year during 2016. The Gas, Water, & Multiutilities industry growth was -0.4% year-over-year during 2016. Duke Energy growth was faster than the industry during 2016.

Profit Analysis

Duke Energy (DUK) Net Profit And Net Margin From 2012 To...

This report provides the last five years net profit and net margin of Duke Energy Corp (DUK) from 2012 to 2016. Duke Energy reported a total net income of $2.2 billion during 2016. Duke Energy generated a total of $22.7 billion revenues during 2016. Duke Energy net profit margin was 9.5% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in December.