Hertz Global Holdings, Inc.
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Hertz Global Holdings, Inc. Financial Snapshot
Operating Performance
Fast Facts
225 Brae Boulevard, Park Ridge, The company reported revenue of US$7,562.53
Headquarters Address
07656,United States of America million during the fiscal year 2010 (2010). The
company's revenue declined at a compounded rate of
Telephone + 1 201 3072000
1.58% during 2006–2010, with an annual growth of
6.49% over 2009. In 2010, the company recorded an
Fax + 1 201 3072644 operating margin of -0.18%, as against -2.41% in
2009.
Website www.hertz.com
Ticker Symbol, Stock Exchange HTZ, New York Stock Exchange Revenue and Margins
Number of Employees 22,900
Fiscal Year End December
Revenue (in US$ million) 7,562.53
SWOT Analysis
Strengths Weaknesses
Return on Equity
Balanced customer mix Revenue concentration
The company recorded a return on equity (ROE) of -
2.27% for 2010, as compared to its peers, Aggreko
Increased revenues Substantial debt plc (Ticker: AGK), Avis Budget Group, Inc. (Ticker:
CAR) and United Rentals, Inc. (Ticker: URI), which
Market leading position recorded ROEs of 26.17%, 13.17% and 0.00%
respectively. The company reported an operating
margin of -0.18% in 2010.
Strong market presence
Strong partnerships Return on Equity
Opportunities Threats
Expanding the franchise network Fragmented equipment market
Geographic expansion Seasonality in business operations
Setting up of entertainment services
Vehicle recalls
business
Strategic acquisitions
Financial Leverage
The company reported a debt to equity ratio of 5.35 in
2010, as compared to its peers, Aggreko plc, Avis
Budget Group, Inc. and United Rentals, Inc., which
recorded debt to equity ratios of 0.19, 17.11 and -
146.45 respectively.Furthermore, in 2010, the
company recorded a debt to capital ratio of 0.65, as
compared to its peers, Aggreko plc, Avis Budget
Group, Inc. and United Rentals, Inc., which recorded
debt to capital ratios of 0.16, 0.75 and 0.79
respectively.
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Hertz Global Holdings, Inc. - SWOT Profile Page 1
Hertz Global Holdings, Inc.
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TABLE OF CONTENTS
1 Business Analysis ................................................................................................................................... 5
1.1 Company Overview ................................................................................................................................................5
1.2 Business Description ..............................................................................................................................................5
1.3 Major Products and Services .................................................................................................................................6
2 Analysis of Key Performance Indicators ............................................................................................... 7
2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7
2.2 Key Financial Performance Indicators .................................................................................................................10
2.2.1 Revenue and Operating Profit .........................................................................................................................10
2.2.2 Asset, Liabilities and Capex .............................................................................................................................11
2.2.3 Net Debt vs. Gearing Ratio ..............................................................................................................................12
2.3 Competitive Benchmarking ..................................................................................................................................13
2.3.1 Market Capitalization .......................................................................................................................................14
2.3.2 Efficiency ..........................................................................................................................................................15
2.3.3 Capital Expenditure ..........................................................................................................................................16
2.3.4 Turnover – Inventory and Asset .......................................................................................................................17
3 Mergers & Acquisitions and Partnerships ........................................................................................... 18
3.1 M&A and Partnerships Strategy ...........................................................................................................................18
4 Recent Developments ........................................................................................................................... 19
5 SWOT Analysis ...................................................................................................................................... 21
5.1 SWOT Analysis - Overview ..................................................................................................................................21
5.2 Strengths ..............................................................................................................................................................21
5.3 Weaknesses .........................................................................................................................................................22
5.4 Opportunities ........................................................................................................................................................22
5.5 Threats .................................................................................................................................................................23
6 Company Statement ............................................................................................................................