S&P Global, Inc. provides independent ratings, benchmarks, analytics, and data to the capital and commodity markets worldwide. The company operates through S&P Global Ratings, S&P Global Market Intelligence, S&P Dow Jones Indices, and S&P Global Platts divisions. The S&P Global Ratings division provides credit ratings, such as issue credit, issuer credit, loan, and Standard & Poor's underlying ratings; national and regional scale credit ratings; and fund credit quality, municipal short-term note, principal stability fund, swap risk, and fund volatility ratings. It also offers ERM benchmark review, local government investment pools, mid-market evaluation, asset manager practices classification, CLO tranche recovery metrics, U.S. residential mortgage originator reviews and recovery analytics, rating evaluation service, credit assessments, credit estimates, liquidity assessments, private credit analysis, servicer evaluations, covered bond monitor, financial services credit tools, corporate mapping, and structured credit products. The S&P Global Market Intelligence division provides company data, pricing and marketing data, analytic measures, reference data and classifications, and ratings and research services. The S&P Dow Jones Indices division offers various indices, including equity, fixed income, commodities, real estate, strategy, and custom indices that help investors to identify, measure, and capitalize on global investment opportunities; and research, education, and market commentary services. The S&P Global Platts division provides real-time news and price information; market reports and analytics; end-of-day market data; geospatial data and maps; conferences; and a weekly television program broadcast for the commodities and energy markets. The company was formerly known as McGraw Hill Financial, Inc. and changed its name to S&P Global, Inc. in April 2016. S&P Global, Inc. was founded in 1888 and is headquartered in New York, New York.
Business Analysis of S&P Global
The Financial 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 S&P Global 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 S&P Global 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 S&P Global with an interactive chart.
- Revenue Growth: S&P Global reported a revenue growth of 6.5% year-on-year during 2016. Financial News, Research and Data Industry grew at 4.9% in the same period
- COGS share of Revenues: As a percentage of revenue, S&P Global spent 31.3% of its total revenues on COGS. Financial News, Research and Data industry average (COGS share of revenue) in the same period was 25.8%
- R&D share of Revenues: S&P Global 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, S&P Global spent 25.5% of its total revenues on Sales, Marketing, and General Administration (SG&A). Financial News, Research and Data industry average SG&A spending in the same period was 34.2%
- Inventory share of Revenues: S&P Global Inventory share of Revenues details are not available because either company does not share the data or we do not have it
- Accounts Payable share of Revenues: As a percentage of revenue, S&P Global invested 3.2% of its total revenues on Accounts Payable (A/P) Financial News, Research and Data industry average Accounts Payable investment in the same period was 12.8%
- Accounts Receivable share of Revenues: As a percentage of revenue, S&P Global invested 19.8% of its total revenues on Accounts Receivable (A/R). Financial News, Research and Data industry average Accounts Receivable investment in the same period was 22.0%
- PP&E share of Revenues: As a percentage of revenue, S&P Global invested 4.8% of its total revenues on Property, Plants, and Equipments (PP&E). Financial News, Research and Data industry average PPE investment in the same period was 6.0%
- Intangibles share of Revenues: As a percentage of revenue, S&P Global invested 78.7% of its total revenues on Intangibles. Financial News, Research and Data industry average Intangibles investment in the same period was 69.0%
- Net Margins: S&P Global Net Margins in the year 2016 were 37.2%. Financial News, Research and Data industry average Net Margins in the same period were 22.0%
Sector and Industry Association of S&P Global
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.
S&P Global is associated with Financials Sector Group, Financial Services Sector, and Financial News, Research and Data Industry.
Financial Services sector is comprised of the following industries: Investment Services; Consumer Finance; Payment and Transaction Processing Services; Financial News, Research and Data. The definitions for each of the industries is as follows:
- Investment Services industry includes investment banking companies, asset management companies, securities brokers and dealers, online brokers, and security/commodity exchanges.
- Consumer Finance industry includes companies providing credit services and mortgage finance services.
- Payment and Transaction Processing Services industry includes companies providing financial news, research, and data services.
- Financial News, Research and Data industry includes companies providing payments and transaction processing services.
Industry Ranking of S&P Global
With $5.7 billion revenues, S&P Global ranked number 1 of all the companies in the US Financial News, Research and Data industry. There were a total of 6 public companies in the US Financial News, Research and Data industry that had revenues greater than $50 million during 2016.
The top companies in the US Financial News, Research and Data 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.