Harley-Davidson, Inc. primarily manufactures and sells cruiser and touring motorcycles. The company operates through two segments, Motorcycles & Related Products, and Financial Services. The Motorcycles & Related Products segment designs, manufactures, and sells wholesale on-road Harley-Davidson motorcycles, as well as motorcycle parts, accessories, general merchandise, and related services. It offers motorcycle parts and accessories, such as replacement parts, and mechanical and cosmetic accessories; general merchandise, including MotorClothes apparel and riding gears; and various services to its independent dealers comprising motorcycle services, business management training programs, and customized dealer software packages. This segment also licenses the Harley-Davidson name and other trademarks. It sells its products to retail customers through a network of independent dealers, as well as ecommerce channels in the United States, Canada, Latin America, Europe, the Middle East, Africa, and the Asia-Pacific. The Financial Services segment provides wholesale and retail financing services; and insurance and insurance-related programs primarily to Harley-Davidson dealers and retail customers in the United States and Canada. This segment offers wholesale financial services, such as floorplan and open account financing of motorcycles, and motorcycle parts and accessories; and retail financing services, including installment lending for the purchase of new and used Harley-Davidson motorcycles. It also operates as an agent providing point-of-sale protection products, including motorcycle insurance, extended service contracts, credit protection, and motorcycle maintenance protection. Harley-Davidson, Inc. was founded in 1903 and is based in Milwaukee, Wisconsin.
Business Analysis of Harley-Davidson
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 Harley-Davidson 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 Harley-Davidson 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 Harley-Davidson with an interactive chart.
- Revenue Growth: Harley-Davidson reported a revenue growth of 0.0% year-on-year during 2016. Automobiles Industry grew at 4.4% in the same period
- COGS share of Revenues: As a percentage of revenue, Harley-Davidson spent 62.2% of its total revenues on COGS. Automobiles industry average (COGS share of revenue) in the same period was 86.6%
- R&D share of Revenues: Harley-Davidson R&D share of Revenues details are not available because either company does not share the data or we do not have it
- SG&A share of Revenues: As a percentage of revenue, Harley-Davidson spent 20.3% of its total revenues on Sales, Marketing, and General Administration (SG&A). Automobiles industry average SG&A spending in the same period was 8.0%
- Inventory share of Revenues: As a percentage of revenue, Harley-Davidson spent 8.3% of its total revenues on Inventories. Automobiles industry average Inventory spending in the same period was 8.0%
- Accounts Payable share of Revenues: As a percentage of revenue, Harley-Davidson invested 3.9% of its total revenues on Accounts Payable (A/P) Automobiles industry average Accounts Payable investment in the same period was 14.6%
- Accounts Receivable share of Revenues: As a percentage of revenue, Harley-Davidson invested 118.7% of its total revenues on Accounts Receivable (A/R). Automobiles industry average Accounts Receivable investment in the same period was 47.5%
- PP&E share of Revenues: As a percentage of revenue, Harley-Davidson invested 16.4% of its total revenues on Property, Plants, and Equipments (PP&E). Automobiles industry average PPE investment in the same period was 34.0%
- Intangibles share of Revenues: As a percentage of revenue, Harley-Davidson invested 0.9% of its total revenues on Intangibles. Automobiles industry average Intangibles investment in the same period was 2.9%
- Net Margins: Harley-Davidson Net Margins in the year 2016 were 11.5%. Automobiles industry average Net Margins in the same period were 4.1%
Sector and Industry Association of Harley-Davidson
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.
Harley-Davidson is associated with Industrials Sector Group, Automobiles and Parts Sector, and Automobiles 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 Harley-Davidson
With $6 billion revenues, Harley-Davidson ranked number 7 of all the companies in the US Automobiles industry. There were a total of 18 public companies in the US Automobiles industry that had revenues greater than $50 million during 2016.
The top-10 companies in the US Automobiles 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.
- Conduct a holistic benchmarking; to identify and target additional sources of value
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- Get free data, charts, and analysis of Harley-Davidsonand its peers on select key performance indicators by clicking the reports provided below