Business Analysis of Hertz Global Holdings

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Hertz Global Holdings

HERTZ GLOBAL HOLDINGS

Business Overview

The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar and Thrifty vehicle rental brands in approximately 9,700 corporate and franchisee locations throughout North America, Europe, The Caribbean, Latin America, Africa, the Middle East, Asia, Australia, and New Zealand. The Hertz Corporation is one of the largest worldwide airport general use vehicle rental companies, and the Hertz brand is one of the most recognized in the world. Product and service initiatives such as Hertz Gold Plus Rewards, Carfirmations, Mobile Wi-Fi and unique vehicles offered through the Adrenaline, Dream, Green and Prestige Collections set Hertz apart from the competition. Additionally, The Hertz Corporation owns the vehicle leasing and fleet management leader Donlen Corporation, operates the Firefly vehicle rental brand and Hertz 24/7 car sharing rental business in international markets and sells vehicles through Hertz Car Sales. For more information about The Hertz Corporation, visit: www.hertz.com.

Hertz Global Holdings

Hertz Global Holdings


R&P Rank: 323
Sector: Travel & Leisure
Industry:Car Rental Services
H.Q Location:Florida
Website: www.hercrentals.com
Company Address:
8501 WILLIAMS ROAD, 3RD FLOOR, ESTERO FL 33928
Ph:239-301-7000

Business Analysis of Hertz Global Holdings

The Travel & Leisure 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 Hertz Global Holdings 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 Hertz Global Holdings 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 Hertz Global Holdings with an interactive chart.

  1. Revenue Growth: Hertz Global Holdings reported a revenue growth of -2.4% year-on-year during 2016. Car Rental Services Industry grew at 0.8% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Hertz Global Holdings spent 56.0% of its total revenues on COGS. Car Rental Services industry average (COGS share of revenue) in the same period was 68.5%
  3. R&D share of Revenues: Hertz Global Holdings 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, Hertz Global Holdings spent 10.2% of its total revenues on Sales, Marketing, and General Administration (SG&A). Car Rental Services industry average SG&A spending in the same period was 11.7%
  5. Inventory share of Revenues: Hertz Global Holdings 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, Hertz Global Holdings invested 9.3% of its total revenues on Accounts Payable (A/P) Car Rental Services industry average Accounts Payable investment in the same period was 11.7%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Hertz Global Holdings invested 14.6% of its total revenues on Accounts Receivable (A/R). Car Rental Services industry average Accounts Receivable investment in the same period was 13.5%
  8. PP&E share of Revenues: As a percentage of revenue, Hertz Global Holdings invested 132.6% of its total revenues on Property, Plants, and Equipments (PP&E). Car Rental Services industry average PPE investment in the same period was 135.5%
  9. Intangibles share of Revenues: As a percentage of revenue, Hertz Global Holdings invested 50.1% of its total revenues on Intangibles. Car Rental Services industry average Intangibles investment in the same period was 24.5%
  10. Net Margins: Hertz Global Holdings Net Margins in the year 2016 were -5.6%. Car Rental Services industry average Net Margins in the same period were 1.4%

Sector and Industry Association of Hertz Global Holdings

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.

Hertz Global Holdings is associated with Travel & Leisure Sector and Car Rental Services Industry.

Travel & Leisure sector is comprised of the following industries: Airline; Car Rental Services; Casino; Hotels and Resorts; Recreational Services. The definitions for each of the industries is as follows:

  • Airline industry includes companies primarily engaged in providing passenger air transport.
  • Car Rental Services industry includes companies engaged in providing car rental services.
  • Casino industry includes providers of gambling and casino facilities.
  • Hotels and Resorts industry includes operators of hotels, motels, lodges, resorts, spas and campgrounds.
  • Recreational Services industry includes providers of leisure facilities and services, such as amusement and theme parks, fitness centers, cruise lines, movie theaters, racetracks, and sports teams.

Industry Ranking of Hertz Global Holdings

With $8.8 billion revenues, Hertz Global Holdings ranked number 1 of all the companies in the US Car Rental Services industry. There were a total of 5 public companies in the US Car Rental Services industry that had revenues greater than $50 million during 2016.

The top companies in the US Car Rental Services industry by revenues during 2016 were:

  1. Hertz Global Holdings ($8.8 billion)
  2. Avis Budget Group ($8.7 billion)
  3. Ryder ($6.8 billion)
  4. Amerco ($3.3 billion)
  5. Herc Holdings ($1.6 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 Hertz Global Holdingsand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of hertz-global-holdings

Avis Budget Group (CAR) Business Analysis – Analyze Historical Performance, Strategic...

Avis Budget Group, Inc. with $9 billion revenues in the year 2016 was the number 2 Car Rental Services company. Read this report to know the top competitors of Avis Budget Group and identify growth and cost optimization opportunities of Avis Budget Group

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

Ryder System Inc with $7 billion revenues in the year 2016 was the number 3 Car Rental Services company. Read this report to know the top competitors of Ryder and identify growth and cost optimization opportunities of Ryder

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

Amerco with $3 billion revenues in the year 2016 was the number 4 Car Rental Services company. Read this report to know the top competitors of Amerco and identify growth and cost optimization opportunities of Amerco

Revenues Analysis

Hertz Global Holdings (HTZ) Revenues And Revenue Growth From 2014 To...

This report provides the last three years revenues and revenue growth of Hertz Global Holdings, Inc (HTZ) from 2014 to 2016. Hertz Global Holdings generated a total of $8.8 billion revenues during 2016. Hertz Global Holdings reported a revenue growth of -2.4% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Hertz Global Holdings (HTZ) Revenues And Revenue Growth From 2014 To...

This report provides the last three years revenues and revenue growth of Hertz Global Holdings, Inc (HTZ) from 2014 to 2016. Hertz Global Holdings generated a total of $8.8 billion revenues during 2016. Hertz Global Holdings reported a revenue growth of -2.4% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Hertz Global Holdings (HTZ) Revenue Growth Comparison With Industry Growth From...

This report provides a comparison of Hertz Global Holdings, Inc (HTZ) revenue growth with Car Rental Services industry growth during the last two years from 2015 to 2016. Hertz Global Holdings reported a revenue growth of -2.4% year-over-year during 2016. The Car Rental Services industry growth was 0.8% year-over-year during 2016. Hertz Global Holdings growth was slower than the industry during 2016.

Profit Analysis

Hertz Global Holdings (HTZ) Net Profit And Net Margin From 2015...

This report provides the last two years net profit and net margin of Hertz Global Holdings, Inc (HTZ) from 2015 to 2016. Hertz Global Holdings reported a total net income of -$491 million during 2016. Hertz Global Holdings generated a total of $8.8 billion revenues during 2016. Hertz Global Holdings net profit margin was -5.6% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in December.

Hertz Global Holdings (HTZ) Net Profit And Net Margin From 2014...

This report provides the last three years net profit and net margin of Hertz Global Holdings, Inc (HTZ) from 2014 to 2016. Hertz Global Holdings reported a total net income of -$491 million during 2016. Hertz Global Holdings generated a total of $8.8 billion revenues during 2016. Hertz Global Holdings net profit margin was -5.6% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in December.

Hertz Global Holdings (HTZ) Net Profit Margin Comparison With Industry From...

This report provides a comparison of Hertz Global Holdings, Inc (HTZ) net profit margin with Car Rental Services industry net profit margin during the last three years from 2014 to 2016. Hertz Global Holdings reported a net profit margin of -5.6% during 2016. The Car Rental Services industry net profit margin was 1.4% during 2016. Hertz Global Holdings was less profitable than the industry during 2016.

Cost & Expenses Analysis

Hertz Global Holdings (HTZ) Cost of Sales (COGS) Analysis From 2014...

This report provides the last three years cost of sales (COGS) analysis of Hertz Global Holdings, Inc (HTZ) from 2014 to 2016. Hertz Global Holdings spent a total of $4.9 billion on COGS during 2016. Hertz Global Holdings generated a total of $8.8 billion revenues during 2016. As a percentage of revenues, Hertz Global Holdings spent 56% of its to