Office Depot, Inc. vs. Office Max, Inc.

Jason Andrew Malone

Background
Office Depot, Inc. Office Max, Inc.

#2 largest office supply chain(behind staples) 1,641 stores worldwide Also sells privately to small and large businesses 42,000 employees Publically traded #211 fortune 500 rank HQ in Boca Raton, FL Started in 1986 Bought by BC partners in 2009

#3 largest office supply chain 991 stores worldwide 51% of business is private contracting to businesses. 29,000 employees Publically traded #330 fortune 500 rank HQ in Naperville, IL Founded in 1988

Notable events/accomplishments
Office Depot, Inc. Office Max, Inc.

1988, initial public offering of stock 1991 Acquires Great Canadian Office Supplies 1994 Begins international expansion, Mexico, Israel, Colombia and Poland. 2009 Opens stores in Kuwait, and Singapore, first office supply stores in region. 2009 Bought by private equity firm BC partners

1990 Grew substantially with acquisition of Office World Developed regional delivery centers to increase efficiency Filed lawsuits against Med Max and CarMax for infringement of Max

Office Depot Income Statement

Revenues show massive decrease in sales over last 5 years. Decrease in operating expenses to balance out costs/revenues. Had zero other operating expenses in 2011, cutting expenses to see gains. EPS have seen an increase from a steady negative trend the last 3 years.

Office Max Income Statement

We see a steady decrease in Revenue through the last 5 years of business.
Operating expenses have fluctuated to adapt to previous and future years. Net income has seen the largest decrease in numbers dropping from 203.41 million in 2007 to 32.77 million in 2011.

Financial Comparisons
Office Depot, Inc. Office Max, Inc.

Revenue Growth 0.26% Profit Margin 0.41% Net Income 59.99 million Gross Profit 3.426 billion

Revenue Growth 3.94% Profit Margin 0.16% Net Income 32.77million Gross Profit 1.809 billion

Office Depot Balance Sheet

Constant declines in almost every type of asset, resulting in a decrease in total assets over the last 5 years. Liabilities also show a steady decline through the years, but long term debt has had different activity. Showing the company made proper adjustments. Same declining pattern continues into equity showing us total equity and liabilities are losing value. 2009 had a massive decrease but began to see increase the next 2 years.

Office Max Balance Sheet

Assets show a common trend of decreasing since 2007 as with every other subject.
Long term investments have remained equal for last 4 years showing they have not been actively pursuing new opportunities. They have been decreasing their liabilities to go along with their decreasing profits and assets, effectively dropping their long term debt. With the exception of 2009 in every category minimal losses or gains were recorded in shareholders equity.

Liabilities and Assets

Office Depot, Inc. Office Max, Inc.

Total Assets 4.251 billion Liabilities 3.148 billion Long Term Debt 648.31 million Asset Utilization 2.624 Return on Assets 1.37% Return on Equity 8.31% Debt to equity ratio 0.6208

Total Assets 4.069 billion Liabilities 3.500 billion Long Term Debt 1.738 billion Asset Utilization 1.772 Return on Assets 0.81% Return on Equity 5.49% Debt to equity ratio 3.055

Performance Conclusion
With both companies excelling in different areas it makes it difficult to decide which one is actually performing better then the other. Office Depot holds a higher market cap of 410.08 million dollars, a higher net income by 27.2 million dollars, a higher gross profit by 1.617 billion dollars, and a better profit margin by .25%, this is definitely the larger of the two and the better performing. But OfficeMax excels in areas that Office Depot does not coming in with a better overall enterprise value of 442 million, and revenue growth of 3.68%. Office Depot is the more established, successful firm but Office Max is not far behind in any means.

Works Cited
"Office Depot Company History." Www.officedepot.com. Office Depot, 2011. Web. Apr. 2012. <http://www.officedepot.com/specialLinks.do?file=/companyinfo/companyfacts/companyhistory.jsp&t emplate=companyInfo>. "Office Depot, Inc. Company Profile." Www.hoovers.com. Hoovers: A D&B Company, 2011. Web. Apr. 2012. <http://www.hoovers.com/company/Office_Depot_Inc/rcyfxi-1-1njht4-1njfaq.html>. "Office Depot, Inc. Competitors." Www.hoovers.com. Hoovers: A D&B Company, 2011. Web. Apr. 2012. <http://www.hoovers.com/company/Office_Depot_Inc/rcyfxi-1-1nji3i-1njhu5.html>. "Office Depot Inc., Financials." Www.hoovers.com. Hoovers: A D&B Company, 2011. Web. Apr. 2012. <http://www.hoovers.com/company/Office_Depot_Inc/rcyfxi-1-1nji3j-1njhft.html>. "OfficeMax - Company Facts." About.officemax.com. OfficeMax, 2011. Web. Apr. 2012. <http://about.officemax.com/html/officemax_company_facts.shtml>. "OfficeMax Incorporated Company Profile." Www.hoovers.com. Hoovers: A D&B Company, 2011. Web. Apr. 2012. <http://www.hoovers.com/company/OfficeMax_Incorporated/rfttti-1-1njht4-1njfaq.html>. "OfficeMax Incorporated Competitors." Www.hoovers.com. Hoovers: A D&B Company, 2011. Web. Apr. 2012. <http://www.hoovers.com/company/OfficeMax_Incorporated/rfttti-1-1nji3i-1njhu5.html>. "OfficeMax Incorporated Financials." Www.hoovers.com. Hoovers: A D&B Company, 2011. Web. Apr. 2012. <http://www.hoovers.com/company/OfficeMax_Incorporated/rfttti-1-1nji3j-1njhft.html>.