Business Analysis of Apple

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(Avis Budget’s, Consolidated Statements of Cash Flows. Form 10-K, 2013)

Comparing Avis Budget Group’s stock price to its competitors was quite a challenge considering two of Avis competitors (Enterprise-Rent-A-Car, and Europcar Groupe) are privately held companies. Avis Budget Group Inc. is still up 28.36 percent for the year. The company has 98.91% gains in the past 52 weeks. Avis’s stock closed 0.08 % lower at $25.44 on volume of 1.82 million shares. Its average trading volume stands at 1.75 million shares. Avis Budget currently faces resistance at around $25.69. The stock has support at around $23.92. It is currently trading above its 20-day and 50-day moving averages, which is a positive signal for the firm. (Yahoo Finance, Avis)

When looking at Hertz Global Holdings Inc., the stock last closed at $20.69; 1.72% gains. The stock traded in the range of $20.19 and $20.79 during the session and is currently above it 20-day moving average priced of $20.41. Hertz Global gained 27.17% so far this year, while it’s Price/Earnings ratio is at 41.38. (Yahoo Finance, Hertz) When comparing the firm’s stock prices to one another we can see a number of things; such as how well they’re performing, where they’re struggling, etc.

Avis Budget Group and Hertz Global Holding each posted fourth-quarter losses despite having boosted revenue from a year earlier by discounting prices to grab market share in an industry segment that has seen a rebound in demand. Avis Budget Group narrowed its Q4 loss by 73% from a year earlier, to $46 million from $170 million, when it took a $117 million noncash licensing charge related to its Avis Europe acquisition in October 2011. Avis, the number 3 U.S. car rental company behind Enterprise and Hertz, boosted Q4 revenue 4.2%, to $1.7 billion, primarily on more North American rental demand. The company increased rental days by 6%, which more than offset a 2% decline in average daily rates.(Avis Budget Group, Inc. Form 10-K)

The fallowing below is Avis Budget Group, Inc’s, consolidated statements of cash flows:

(Avis Budget’s, Consolidated Statements of Cash Flows. Form 10-K, 2013)

From Avis’s statements of cash flows, we can see exactly how the acquisition of Avis Europe affected Avis as a whole. From the statement above, we can break down and analyze what services generate the most and least for Avis. Even though Avis took a huge hit in 2011 because of their acquisition of Avis Europe, the firm bounced back in 2012 with positive earnings.

Hertz, which completed its acquisition of smaller competitor Dollar Thrifty Automotive Group last November, said last week that its Q4 revenue jumped 15% from a year earlier, to $2.32 billion. A 17% jump in transaction days was partially offset by a 2.8% decline in average rental rates. Hertz did not say how much of that growth was directly attributable to the 43 days during the quarter that it owned Dollar Thrifty. Hertz took a Q4 loss of $36.4 million, compared with a year-earlier profit of $47.1 million. Hertz’s selling, general and administrative costs almost doubled from a year earlier, to $330.4 million, while the company recorded $46.1 million in "other" expenses, reflecting the effects of the Dollar Thrifty buyout. (Hertz Lifted By Dollar Thrifty)

Avis Budget and Hertz continue to battle for share of a U.S. rental car market that’s gradually expanding because of an uptick in business travel and more leisure travel to and within the country. U.S. car rental revenue increased about 4% last year, to $26.2 billion, with about half of the market controlled by Enterprise Holdings, according to the trade publication Auto Rental News. (Auto Rental News)

The mission and vision statement of Avis Budget Group provides an overarching and aspirational image for the future of Avis. Avis’s mission statement consists of “We will provide the leadership and support necessary to sustain long-term growth and customer satisfaction for our world-class brands. We will passionately promote quality and service at all levels while enhancing each brand’s competitive advantage”. While their vision statement provides a clear understanding of what the company wants to achieve “We will be a leader in the vehicle rental industry by focusing on customers, our people, growth, innovation and efficiency. All of these elements will drive bottom line success and show that Avis and Budget are stronger together than they could be alone”.

In addition to the firm’s mission and vision statement, Avis Budget Group run the company under three core values which consist of; commitment, integrity, and responsibility. Under each one of their core value the firm goes in-depth and explains how each value plays a key element in their mission and vision statement.

• Commitment: We are committed to providing value to our corporate clients and individual customers and to those colleagues who rely on us for leadership or support. We are knowledgeable and passionate about what makes each of our brands unique and powerful, and we are committed to finding innovative ways to fuel their growth. We create value for all segments of the rental car market by faithfully focusing on service excellence and quality.

• Integrity: We display integrity at all times in the business decisions we make and the manner in which we conduct our professional relationships. We support that sense of doing what’s right through a culture of open communications and a spirit of teamwork. We also value the role that diversity among our employees, suppliers and partners plays in our success.

• Responsibility: We take seriously our responsibilities as a corporate citizen, always aware of how our actions can benefit the community and sensitive to the needs of the environment. We make decisions at all times understanding our responsibility for enhancing profitability and serving the interests of our shareholders. As a service company whose success is rooted in the satisfaction and performance of our people, we take responsibility for furthering the professional development of our employees at every level of the organization.

SENSE

Avis Budget Group is a rental car supplier that primarily serves the premium commercial and leisure segments of the travel industry. Avis Budget has a strong operational network. Strong operational network enables the company to gain access to key markets as well as to enhance the quality of its services. However, intense competition in the vehicle rental industry may lead to reduced rental volumes and downward pricing pressure, which could have an adverse impact on Avis Budget’s