Financial Analysis of Office Depot - 1312 Words

Financial Appraisal of Office Depot Part 1 Background introduction for Office Depot Office Depot is a supplier of office products and services. The companys selection of brand name office supplies includes business machines, computers, computer software and office furniture, while its business services encompass copying, printing, document reproduction, shipping, and computer setup and repair. An Samp;P 500 company, Office Depot generates revenues of over US $14 billion annually and has 42,000 employees worldwide. It is headquartered in Boca Raton, Florida. Office Depot is one of the biggest office supplies retailers, but its sales revenue decreased dramatically 26% from 14.5 billion dollars in 2008 to 10.7 billion dollars in 2012.†¦show more content†¦The technical products sales revenues accounted for only 20.9% of all, the ratio were 44.6% and 40% compared with Staples and Office Max respectively. 2. Weak Financial Performance A significant number of its vendors demand accelerated payments or require cash on delivery, such demands could have an adverse impact on its operating cash flow and result in severe stress on its liquidity. A downgrade in its credit ratings or a general disruption in the credit markets could make it more difficult for it to access funds, refinance indebtedness, obtain new funding or issue securities. 3. Weak Operating Performance Sales per retailing stores was average 6.4 million, the level stayed behind Office Max and Staples. The gross profit margin averages 30% while the operating profit margin almost 0%. Opportunity 1. Expand online services As more consumers transfer their purchasing place from physical stores to online, OD could enhance the online selling power. 2. Acquisitions Staples’s revenue was twice the OD’s revenue, OD could merge with Office Max in order to compete with Staples at the same level. In addition, after that the alliance could integrate the source effectively and efficiently and cut more operating cost. 3. Emerging markets and expansion abroad Although the economy of America was sinking into mud, the emerging markets like the Golden Brick countries have much bigger purchasing powerShow MoreRelatedProposed Merger Between Staples And Office Depot972 Words   |  4 PagesEffects: Proposed Merger between Staples and Office Depot (1997) Xueqi Ji 6252074952 Abstract FTC employed structural, documentary, statistical, econometrics and financial evidence to verify that the proposed merger of Staples and Office Depot will lead to increase in market concentration, market prices and stock prices, and thus support FTC’s contention that this merger will cause an anticompetitive effect on Office Superstore market. Staples and Office Depot made a plain and useless contradiction.Read MoreStaples Incorporated, By Founder Tom Stemberg1150 Words   |  5 Pageshe desired. The idea then came to him that â€Å"The world needed a supermarket for office products† (Stemberg 1985). Staples then became the very first office supply store. The first store was opened May 1, 1986 in Brighton, MA. In the years to come, competition started to arise, in result Staples came up with their very first slogan â€Å"Yeah, we’ve got that† this help staples get a lead in the competition with Office Depot, but the slogan that carried them to the top o f the local business supply storesRead MoreStaples Case Study1748 Words   |  7 Pagesyear-end 2010 financial statements, organizational chart, competitor information and more. The case time setting is the year 2011. Sufficient internal and external data are provided to enable students to evaluate current strategies and recommend a three-year strategic plan for the company. Headquartered in Framingham, Massachusetts, Staples’s common stock is publicly traded under the ticker symbol SPLS. Staples is the #1 office supply superstore operator  in the US. selling office products, furnitureRead MoreStaples Case Study1732 Words   |  7 Pagesyear-end 2010 financial statements, organizational chart, competitor information and more. The case time setting is the year 2011. Sufficient internal and external data are provided to enable students to evaluate current strategies and recommend a three-year strategic plan for the company. Headquartered in Framingham, Massachusetts, Staples’s common stock is publicly traded under the ticker symbol SPLS. Staples is the #1 office supply superstore operator  in the US. selling office products,Read MoreLeadership Style Of Robert Nardelli1090 Words   |  5 Pagessuccession to GE CEO (Jack Welch) and was immediately tapped by Ken Langone to take the CEO position at Home Depot, and took a job in December 2000. A year after his entry, Home Depot was quickly removed from the top ten list of best places to work and never returned. Initial Success: He right away began leaving his mark on the organization, and for the first five years, the company s financial performance suggested good leadership. Sales grew dramatically–from $46 million in 2000 to $81.5 million inRead MoreHome Depot Financial Analysis1759 Words   |  8 PagesOverview Office Depot, Inc. (â€Å"Office Depot†), a supplier of a broad assortment of office products and business services throughout the United States and worldwide, announced on February 20, 2013 a merger agreement with OfficeMax, Inc., which will better equip them to compete in the rapidly-changing industry. In fiscal year 2012 alone, Office Depot generated $10.7 billion of revenues from its products and services, yet industry reviews of this company seem unfavorable. In this FSA Case AnalysisRead MoreInsider Trading: SEC v. Mark D. Begelman Essay629 Words   |  3 PagesOverview of the Case: The Securities and Exchange Commission claims Mark D. 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While Office Depot was one of the first companies to tap intoRead MoreFinacial Analysis Staples Office Depot Essay8290 Words   |  34 PagesIntroduction Overview of Staples, Inc. and Office Depot, Inc. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..†¦Ã¢â‚¬ ¦3 Case Objectives†¦Ã¢â‚¬ ¦.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..†¦Ã¢â‚¬ ¦.4 Financial Analysis Common-Size Vertical Analysis amp; Comparative Horizontal Analysis Common-Size Balance Sheet †¦.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..†¦.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.4 Common-Size Consolidated Statement of Income†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..†¦Ã¢â‚¬ ¦. 5 Comparative Balance Sheet †¦.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..†¦Ã¢â‚¬ ¦.6 Comparative Consolidated Statement of Income†¦Ã¢â‚¬ ¦..†¦Ã¢â‚¬ ¦..†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 7 Financial Ratio Analysis Liquidity Ratios†¦.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Read MoreBusiness Case Study : Lowe s Company1698 Words   |  7 Pagesremodeling of the stores layout was done in 1980s, after the arrival and success of the biggest rival â€Å"Home Depot†. A typical Lowe’s store carries approximately 40,000 items. These items include other brands too such as allen + roth, Kobalt and Utilitech. Lowe’s product line includes products for home decoration, house maintenance, repairing, remodeling redesigning, and constructing a new house or office. Items that may not be available in the stores are still available to customers by placing special orders