Although the link to their 2010 Consolidated Financial statements on their investor page results in a 404, I managed to lay my hands on some partial reports in the meantime, giving me the figures for 2010
It's always easy to do an analysis of Capgemini, as they're in the consulting business. In short, they sell people - or billable hours, whichever you prefer. So I always look at revenue, operating margin and operating profit for each country, and then divide that by the number of employees for each. It gives you a nice overview of how "successful" each country is, especially if you express those figures to the average figures for the Capgemini Group
Here is a breakdown of the SBA's - you might want to open the picture in another tab for better viewing
A note. It has actually become unfair to include India in these figures, as only external revenue is recorded, whereas inter-geographic area revenue for India now is more than two times as high as their external one
In millions of euros, for each SBA, the first table shows revenue, operating margin, operating margin %, operating profit and employee count - it is the average number of employees for 2010
The second table shows revenue, operating margin, operating cost, operating profit and hit ratio. These figures are the individual employee performances for each country, and hit ratio is my own invention: operating profit divided by revenue. In the end, it's tangible money that counts
The third table shows the relative-to-relative figures, indexed: 1,0 is on par, below is bad, above is good. What is on par? Table two results in a Group Average, and that's where these figures relate to
The last table tells the tale for each country, showing their individual performance towards the Group.
UK making 2 billion in revenue and the highest profit? Impressive (table 1).
UK individuals making 234K revenue per person, resulting in a huge profit compared to the others? Wow (table 2).
UK getting the highest percentages in table 3? Fantastic - but look at their hit ratio; it's only number four on the list, making them big in revenue, profit, but also cost
So, as usual, that leaves, after India of course, Benelux as the one country who works smartest, making the most profit out of revenue.
The table below shows relative employee hit ratio for each country over the last 6 years: again, 1,0 is par
So, what does that mean for the group, in real money? Well, revenue per employee is slightly up
Cost, however, is also up, also slightly, although not in all countries
Profit then: impressive recovery all over, save UK (and India)
With figures like these, Capgemini as a Group is, within margin, exactly back on their 2007 figures - however, with 20% more employees, most of which based in India - changing that 6,236 euro operating profit -before tax that is- per person into 5,012. Not very comfortable, but a lot better than 2009's 3,697 euro pp.
The model has changed since: where in 2007 Consulting Services accounted for 8.7% of total revenue, that's now 5.9% - with handing over almost all that to Technology Services
My advice to Capgemini?
- Figure out why you're throwing away an additional 100K euro per employee in the US and UK - that has been going on for years now. 2,000 euro a week - can't afford that with operating profits like the above
- Figure out why France has been performing below par for years, and finally hitting par this year - what has really changed? Not the number of employees
- What on earth are you going to do with Southern Europe & LA? Even though it outperformed France three years in a row (...), these last three years are putting the nail in its coffin. I mean really, 400 euro net profit per person ain't much, especially not on a 61K revenue
Oh and give the Benelux the credit they deserve - they have been sustaining the better part of the Group since last century, and not everyone seems to like "the French treatment"