Business Analysis of United Technologies

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of United Technologies

UNITED TECHNOLOGIES

Business Overview

United Technologies Corporation provides technology products and services to building systems and aerospace industries worldwide. Its Otis segment designs, manufactures, sells, and installs passenger and freight elevators, escalators, and moving walkways; and offers modernization products to upgrade elevators and escalators, as well as maintenance and repair services. The company's UTC Climate, Controls & Security segment provides heating, ventilating, air conditioning, and refrigeration solutions, such as controls for residential, commercial, industrial, and transportation applications. This segment offers electronic security products, including intruder alarms, access control systems, and video surveillance systems; fire safety products; and design, installation, system integration, repair, maintenance, monitoring, and inspection services. Its Pratt & Whitney segment supplies aircraft engines for commercial, military, business jet, and general aviation markets; and provides aftermarket maintenance, repair, and overhaul, as well as fleet management services. The company's UTC Aerospace Systems segment provides electric power generation, power management, and distribution systems; air data and aircraft sensing systems; engine control, intelligence, surveillance, and reconnaissance systems; engine components; environmental control systems; fire and ice detection, and protection systems; propeller systems; engine nacelle systems; aircraft lighting and seating, and cargo systems; actuation and landing systems; space products and subsystems; and aftermarket services. United Technologies Corporation offers its services through manufacturers' representatives, distributors, wholesalers, dealers, retail outlets, and sales representatives, as well as directly to customers. United Technologies Corporation was founded in 1934 and is headquartered in Farmington, Connecticut.

United Technologies

United Technologies


R&P Rank: 47
Sector: Aerospace and Defense
Industry:Aerospace Products, Parts, Systems and Services
H.Q Location:Connecticut
Website: www.utc.com
Company Address:
10 FARM SPRINGS ROAD, FARMINGTON CT 06032
Ph:860-728-7000

Business Analysis of United Technologies

The Aerospace and Defense 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 United Technologies 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 United Technologies 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 United Technologies with an interactive chart.

  1. Revenue Growth: United Technologies reported a revenue growth of 2.0% year-on-year during 2016. Aerospace Products, Parts, Systems and Services Industry grew at 0.8% in the same period
  2. COGS share of Revenues: As a percentage of revenue, United Technologies spent 72.4% of its total revenues on COGS. Aerospace Products, Parts, Systems and Services industry average (COGS share of revenue) in the same period was 78.4%
  3. R&D share of Revenues: As a percentage of revenue, United Technologies spent 4.1% of its total revenues on R&D. Aerospace Products, Parts, Systems and Services industry average R&D spending in the same period was 2.7%
  4. SG&A share of Revenues: As a percentage of revenue, United Technologies spent 10.6% of its total revenues on Sales, Marketing, and General Administration (SG&A). Aerospace Products, Parts, Systems and Services industry average SG&A spending in the same period was 8.3%
  5. Inventory share of Revenues: As a percentage of revenue, United Technologies spent 15.2% of its total revenues on Inventories. Aerospace Products, Parts, Systems and Services industry average Inventory spending in the same period was 25.0%
  6. Accounts Payable share of Revenues: As a percentage of revenue, United Technologies invested 13.1% of its total revenues on Accounts Payable (A/P) Aerospace Products, Parts, Systems and Services industry average Accounts Payable investment in the same period was 10.1%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, United Technologies invested 20.1% of its total revenues on Accounts Receivable (A/R). Aerospace Products, Parts, Systems and Services industry average Accounts Receivable investment in the same period was 18.0%
  8. PP&E share of Revenues: As a percentage of revenue, United Technologies invested 16.0% of its total revenues on Property, Plants, and Equipments (PP&E). Aerospace Products, Parts, Systems and Services industry average PPE investment in the same period was 15.2%
  9. Intangibles share of Revenues: As a percentage of revenue, United Technologies invested 74.7% of its total revenues on Intangibles. Aerospace Products, Parts, Systems and Services industry average Intangibles investment in the same period was 39.7%
  10. Net Margins: United Technologies Net Margins in the year 2016 were 8.8%. Aerospace Products, Parts, Systems and Services industry average Net Margins in the same period were 7.2%

Sector and Industry Association of United Technologies

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.

United Technologies is associated with Industrials Sector Group, Aerospace and Defense Sector, and Aerospace Products, Parts, Systems and Services Industry.

Aerospace and Defense sector is comprised of the following industries: Aerospace Products, Parts, Systems and Services; Military and Defense. The definitions for each of the industries is as follows:

  • Aerospace Products, Parts, Systems and Services industry includes manufacturers, assemblers, distributors and service providers of aerospace and aircraft parts primarily used in the commercial or private air transport.
  • Military and Defense industry includes producers of components and equipment for the defense industry, including military aircraft, radar equipment and weapons, drones, space and security systems. Military and Defense companies also offer military shipbuilding, submarines, amphibious assault ships and nuclear services. Arms and weapon companies offering consumer firearms are included in the specialized consumer goods.

Industry Ranking of United Technologies

With $57.2 billion revenues, United Technologies ranked number 2 of all the companies in the US Aerospace Products, Parts, Systems and Services industry. There were a total of 32 public companies in the US Aerospace Products, Parts, Systems and Services industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Aerospace Products, Parts, Systems and Services industry by revenues during 2016 were:

  1. Boeing ($94.6 billion)
  2. United Technologies ($57.2 billion)
  3. General Dynamics ($31.4 billion)
  4. Northrop Grumman ($24.5 billion)
  5. Raytheon ($24.1 billion)
  6. Textron ($13.8 billion)
  7. Spirit AeroSystems ($6.8 billion)
  8. Rockwell Collins ($5.3 billion)
  9. Triumph Group ($3.9 billion)
  10. TransDigm Group ($3.2 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 United Technologiesand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of united-technologies

Boeing (BA) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Boeing Co with $95 billion revenues in the year 2016 was the number 1 Aerospace Products, Parts, Systems and Services company. Read this report to know the top competitors of Boeing and identify growth and cost optimization opportunities of Boeing

General Dynamics (GD) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

General Dynamics Corp with $31 billion revenues in the year 2016 was the number 3 Aerospace Products, Parts, Systems and Services company. Read this report to know the top competitors of General Dynamics and identify growth and cost optimization opportunities of General Dynamics

Northrop Grumman (NOC) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Northrop Grumman Corp with $25 billion revenues in the year 2016 was the number 4 Aerospace Products, Parts, Systems and Services company. Read this report to know the top competitors of Northrop Grumman and identify growth and cost optimization opportunities of Northrop Grumman

Raytheon (RTN) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Raytheon Co with $24 billion revenues in the year 2016 was the number 5 Aerospace Products, Parts, Systems and Services company. Read this report to know the top competitors of Raytheon and identify growth and cost optimization opportunities of Raytheon

Textron (TXT) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Textron Inc with $14 billion revenues in the year 2016 was the number 6 Aerospace Products, Parts, Systems and Services company. Read this report to know the top competitors of Textron and identify growth and cost optimization opportunities of Textron

Spirit AeroSystems (SPR) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Spirit AeroSystems Holdings, Inc. with $7 billion revenues in the year 2016 was the number 7 Aerospace Products, Parts, Systems and Services company. Read this report to know the top competitors of Spirit AeroSystems and identify growth and cost optimization opportunities of Spirit AeroSystems

Revenues Analysis

United Technologies (UTX) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of United Technologies Corp (UTX) from 2012 to 2016. United Technologies generated a total of $57.2 billion revenues during 2016. United Technologies reported a revenue growth of 2% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

United Technologies (UTX) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of United Technologies Corp (UTX) from 2002 to 2016. United Technologies generated a total of $57.2 billion revenues during 2016. United Technologies reported a revenue growth of 2% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

United Technologies (UTX) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of United Technologies Corp (UTX) revenue growth with Aerospace Products, Parts, Systems and Services industry growth during the last five years from 2012 to 2016. United Technologies reported a revenue growth of 2% year-over-year during 2016. The Aerospace Products, Parts, Systems and Services industry growth was 0.8% year-over-year during 2016. United Technologies growth was faster than the industry during 2016.

Profit Analysis