Staples vs. Office Depot
Staples and Office Depot compete against one another by selling similar products such as office and school supplies. The difference between these two companies may not be very noticeable when looking at them through a broad lens. However, after comparing the financial statements of these two companies, I found that the profitability, liquidity, and solvency of each is what distinguishes Staples from Office Depot. When comparing the profitability of these two companies at the end of the fiscal year, I discovered that Staples has a gross profit percentage of 26.17 for the 2016 year ending, and during the same year Office Depot is 24.18. The gross profit percentage indicates the percentage of profit earned on each dollar of sales, after taking into consideration the cost of products sold. Therefore, we can conclude that Staples has a higher GPP this year, just as it did last year with a GPP of 25.79 …show more content…
Staples had an EPS of .59 while Office Depot had an EPS of .01. Therefore, Staples’ investors merely receive a bigger reward. This is also a good indicator of the company’s ability to generate a profit. Would it be a good choice to invest in Staples? According to money.cnn.com, Staple has had a lot of fluctuation with their earnings per share over the years. In the 2016 year end, their EPS was $0.59, $0.21 in 2015, and $0.94 in 2014. Currently, Staples’ EPS is at -$2.31. With this inconsistency, I would not invest in Staples. However, I believe the company can perform well for short periods of time.
When comparing two competitive companies in the same market, it is not obvious with of the companies is superior. Based on my calculations I captured from the vertical and horizontal analysis, I believe Staples is the better company. However, Staples has had its fair share of ups and downs like Office Depot, but I believe Staples has recovered more successfully from their
Staples and Office Depot compete against one another by selling similar products such as office and school supplies. The difference between these two companies may not be very noticeable when looking at them through a broad lens. However, after comparing the financial statements of these two companies, I found that the profitability, liquidity, and solvency of each is what distinguishes Staples from Office Depot. When comparing the profitability of these two companies at the end of the fiscal year, I discovered that Staples has a gross profit percentage of 26.17 for the 2016 year ending, and during the same year Office Depot is 24.18. The gross profit percentage indicates the percentage of profit earned on each dollar of sales, after taking into consideration the cost of products sold. Therefore, we can conclude that Staples has a higher GPP this year, just as it did last year with a GPP of 25.79 …show more content…
Staples had an EPS of .59 while Office Depot had an EPS of .01. Therefore, Staples’ investors merely receive a bigger reward. This is also a good indicator of the company’s ability to generate a profit. Would it be a good choice to invest in Staples? According to money.cnn.com, Staple has had a lot of fluctuation with their earnings per share over the years. In the 2016 year end, their EPS was $0.59, $0.21 in 2015, and $0.94 in 2014. Currently, Staples’ EPS is at -$2.31. With this inconsistency, I would not invest in Staples. However, I believe the company can perform well for short periods of time.
When comparing two competitive companies in the same market, it is not obvious with of the companies is superior. Based on my calculations I captured from the vertical and horizontal analysis, I believe Staples is the better company. However, Staples has had its fair share of ups and downs like Office Depot, but I believe Staples has recovered more successfully from their