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weaknesses of a company. With a quick glance at Office Depot’s ratios you notice that they stay
well below the industry average in most areas. There are a few ratios like Debt/Equity, Current,
and Quick Ratios where Office Depot is not too far off from the industry average, so those
According to MSN Money, Office Depot, Inc’s biggest weakness at the moment would be their
interest coverage ratio. Office Depot’s ratio checks in at 5.82 compared to the industry average
of 14.37. That is approximately two and a half times less than the industry average.
Office Depot would struggle in raising short-term capital. The quickest way to tell is
through the Debt to Equity ratio. According to the textbook, this ratio measures how quickly
items become liquid, in order to turn tangible items into cash. When the ratio score below a 1,
Judging by the chart above it is best for Office Depot to raise Long-Term Capital through the
equity method. That presents the company with the highest earning per share rate.
Working Capital
When it comes to working capital Office Depot, Inc has approximately $181,000,000 of
working capital following the 2017 fiscal year. This is a big dip from what they had the previous
year, $529,000,000. All of this is a very vast improvement from 2014, where they did not have
any working capital to deal with. Office Depot is seeing a lot of improvements over the past
couple years.
Office Depot, Inc has seen significant financial improvements over the past 5 years. A lot
of this can be attributed to their improved budgeting methods. Their ratios are improving each
year, and bring Office Depot closer and closer to the industry average according MSN Money.
The relationship between Office Depot, Inc and their shareholders has been seeing
significant improvement over the past few years. The relationship was not very good a few
years ago, because there was not much benefit to the stockholders. They were unsure if the
company was even going to make it. Now the company has released dividends the past two
years, something they had not been able to do in a long time. They paid out .05 dividends per
share in 2016, and in 2017 they were able to pay out .10 DPS.
Financial Managers
In the start of the first quarter Office Depot, Inc made the announcement that Joseph T.
Lower will take over as the Chief Financial Officer for Office Depot, Inc. Over the past 22 years
Mr. Lower has experience as CFO at B/E Aerospace, business development for The Boeing
Company, and other financial roles at Credit Suisse. Mr. Lower will be taking over for Stephen
Hare, who is retiring, and helped turn the company around over the four years he served as
CFO. Mr. Lower will assume all financial roles, while he prepares to help Office Depot to
continue to make big strides towards the future (Leland, 2018). This is a great find for Office
Depot, as Mr. Hare made great improvements to turn around a company. Mr. Lower brings a