R.R. Donnelley & Sons Company enables organizations to communicate by creating, managing, delivering, and optimizing their multichannel marketing and business communications. It operates through Variable Print, Strategic Services, and International segments. The company's primary product and service offerings include magazines, catalogs, retail inserts, books, directories, direct mail, packaging, forms, labels, manuals, statement printing, commercial and digital print, logistics services and digital and creative solutions. It also offers outsourcing capabilities, including product configuration, customized kitting, and order fulfillment for technology, medical device, and other companies. The company has operations in Europe, Asia, and North America. R.R. Donnelley & Sons Company was founded in 1864 and is based in Chicago, Illinois.
Business Analysis of RR Donnelley
The Industrial Support 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 RR Donnelley 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 RR Donnelley 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 RR Donnelley with an interactive chart.
- Revenue Growth: RR Donnelley reported a revenue growth of -0.6% year-on-year during 2016. Business Services Industry grew at 2.8% in the same period
- COGS share of Revenues: As a percentage of revenue, RR Donnelley spent 80.0% of its total revenues on COGS. Business Services industry average (COGS share of revenue) in the same period was 67.3%
- R&D share of Revenues: RR Donnelley 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, RR Donnelley spent 13.1% of its total revenues on Sales, Marketing, and General Administration (SG&A). Business Services industry average SG&A spending in the same period was 17.2%
- Inventory share of Revenues: As a percentage of revenue, RR Donnelley spent 5.5% of its total revenues on Inventories. Business Services industry average Inventory spending in the same period was 2.2%
- Accounts Payable share of Revenues: As a percentage of revenue, RR Donnelley invested 14.5% of its total revenues on Accounts Payable (A/P) Business Services industry average Accounts Payable investment in the same period was 7.0%
- Accounts Receivable share of Revenues: As a percentage of revenue, RR Donnelley invested 19.6% of its total revenues on Accounts Receivable (A/R). Business Services industry average Accounts Receivable investment in the same period was 17.2%
- PP&E share of Revenues: As a percentage of revenue, RR Donnelley invested 9.4% of its total revenues on Property, Plants, and Equipments (PP&E). Business Services industry average PPE investment in the same period was 39.9%
- Intangibles share of Revenues: As a percentage of revenue, RR Donnelley invested 11.2% of its total revenues on Intangibles. Business Services industry average Intangibles investment in the same period was 43.0%
- Net Margins: RR Donnelley Net Margins in the year 2016 were -7.2%. Business Services industry average Net Margins in the same period were 5.0%
Sector and Industry Association of RR Donnelley
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.
RR Donnelley is associated with Industrials Sector Group, Industrial Support Services Sector, and Business Services Industry.
Industrial Support Services sector is comprised of the following industries: Business Services; Consulting Services, Training and Professional Services; Staffing & Outsourcing Services; Environmental Services. The definitions for each of the industries is as follows:
- Business Services industry includes providers of non financial services to a wide range of industrial enterprises and governments. This industry includes providers of uniform companies, Staffing and Outsourcing companies, office cleaning services, and companies that install, service and monitor alarm and security systems.
- Consulting Services, Training and Professional Services industry includes companies that offer management consulting services to both public and Governmental agencies.
- Staffing & Outsourcing Services industry includes companies providing contract, temporary, as well as permanent staff to clients with specific employment requirements. These companies also provide payroll and human resources outsourcing solutions for small and medium-sized businesses.
- Environmental Services industry includes companies that provide consulting and services for pollution reduction and control, recycling, waste-to-energy conversion, and hazardous waste management.
Industry Ranking of RR Donnelley
With $6.9 billion revenues, RR Donnelley ranked number 1 of all the companies in the US Business Services industry. There were a total of 67 public companies in the US Business Services industry that had revenues greater than $50 million during 2016.
The top-10 companies in the US Business Services 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.