Finacial Analysis Staples & Office Depot

Table of Contents
Introduction
Overview of Staples, Inc. and Office Depot, Inc. ………………………………..……3
Case Objectives…….……………………………………………..………………..…….4
Financial Analysis
Common-Size Vertical Analysis & Comparative Horizontal Analysis
Common-Size Balance Sheet ….…………….……….……………..….……….4
Common-Size Consolidated Statement of Income…………….………..……. 5
Comparative Balance Sheet ….…………….……………………………..…….6
Comparative Consolidated Statement of Income……..……..……………….. 7
Financial Ratio Analysis
Liquidity Ratios….………..………………………………………………..…….8
Long-Term Debt – Paying Ability………………………..…..………………..10
Profitability & Investor Analysis………..……………….…………….………11
Conclusion & Recommendation……………………………………………………………….13
References…………………………….……………………………………………..…..………14
Appendices ………………………………………..….…………………………………………15
Introduction
Overview of Staples, Inc. and Office Depot, Inc.
Staples Inc. and Office Depot Inc., are two companies that deal with offices supplies and compete with each another. The two organizations sell similar products and try to price match items to encourage more customer revenue. Like other organizations, they both encourage customers to buy the product as well as offering deals that would make customers walk inside their stores. They also have similar accounting and financial statements that make the organization a more reliable one.
Staples is a large office supply chain store with over 2000 stores worldwide operating in 26 countries. It is a fast growing industry which provides supplies for both school and business. These products consist from erasers to fast high definition computers and have grown to include television sets and furniture for offices. Its founder, Tom Stemberg, a former supermarket chain executive was working over the Fourth of July weekend on a business proposal when his printer ribbon broke because it was the holiday weekend, all the local suppliers and stationery stores were closed. After driving from store to store

References: Gibson, C.H. (2011). Financial Statement & Analysis (12th Ed.). South-Western, Cengage Learning Staples, Inc Staples, Inc. (2008). Securities and Exchange Form 10-K Staples, Inc Staples, Inc. (2010). Securities and Exchange Form 10-K Office Depot, Inc Office Depot, Inc. (2008). Securities and Exchange Form 10-K Office Depot, Inc Office Depot, Inc. (2010). Securities and Exchange Form 10-K Appendices Common stock, $.0006 par value, 2,100,000,000 shares authorized; issued 896,655,170 | | shares at January 30, 2010 and 882,032,761 shares at January 31, 2009 Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,869,138 5,367,341 | Less: treasury stock at cost, 167,990,178 shares at January 30, 2010 and 166,427,240 | | | shares at January 31, 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,388,395) (3,357,734) | Total Staples, Inc