In 2011, Staples was underperforming both the S&P 500 index and the S&P Retail index after many years of at least out performing one of the two. The company received unqualified opinions as to the accuracy of their financial statements and their internal control form EY. Ronald Sargant was listed as the company’s CEO and Christine Komola was listed as the CFO, being both the principal financial officer and the principal accounting officer. The company paid an effective tax rate comparable to prior years at 32.6%. Sales in all three of the company’s sales sectors increased from the prior year. Management disclosed their expectation of continued sales growth and to increase the number of North American retail stores. The sales for comparable …show more content…
The company again received unqualified opinions for both the reliability if its financial statements and its internal control. The principal officers were the same as the preceding year. All three sales segments posted decreases in sales, with international sales falling by 10.7%. Management stated that the company is continually falling short of expectations, and due to this increasing uncertainty, they will no longer provide annual profitability projections, and will instead provide these estimates on a quarterly basis. The company continued to see sales moving online and plan to devote more attention to that market, closing up to 225 North American stores by the end of 2015. The company incurred a further $78.3 million in restructuring costs throughout the year. The company’s available fund in cash and credit was reduced in amount to only 1.55 billion, a signal that creditors may be increasingly wary of Staples’ …show more content…
The company sponsors pension plans that cover certain employees in Europe and the U.S. Net income for 2015 was $379 million compared with $135 million in 2014 Earnings per diluted share from continuing operations was $0.59 in 2015 compared to $0.21 in 2014 Gross profit as a percentage of sales was 26.2% for 2015 compared to 25.8% for 2014 Selling, general and administrative expenses in 2015 decreased by $216 million or 4.5% from
Still, diluted EPS fell from $8.63 in 2014 to $5.77 in 2015 - a 49.6% decrease, which is a very discouraging sign.
I will start with the history of Staples. Myra Hart, Leo Kahn and Thomas G. Stemberg founded Staples in the late 1980s. The company opened its first store in Brighton, Massachusetts on May 1, 1986. Staples, Inc. is the country's largest operator of office supplies superstores, offering a vast selection of products at low prices, primarily to small business owners. Staples pioneered this concept in 1986 and grew rapidly after opening its first store in the Boston area. The company subsequently expanded to areas outside the Northeast; by the early 2000s, there were about 1,300 Staples outlets located both in major metropolitan areas and smaller markets in 45 states, the District of Columbia, and 10 Canadian provinces. In addition to the retail oper...
Another highlight of the company was the company’s gross margin, which was 32.8 in 2012, just a little more than the 31.9 in 2011 and their selling rate went down by 20.9
Analyzing Wal-Mart's annual report provides a positive outlook on Wal-Mart's financial health. Given the specific ratios and its comparison to other companies in the same industry, Wal-Mart is leading and more than likely continue its dominance. Though Wal-Mart did not lead in all numbers, its leadership and strong presence of the market cements the ongoing success. The review of the current ratio, quick ratio, inventory turnover ratio, debt ratio, net profit margin ratio, ROI, ROE, and P/E ratio all indicate an upbeat future for the company. The current ratio, which is defined as current assets divided by current liabilities, is a measure of how much liabilities a company has compared to its assets. Wal-Mart in the year of 2007 had a current ratio of .90, and as of January 2008 it had a current ratio of .81. The quick ratio, which is defined as current assets minus inventory divided by current liabilities, is a measure of a company's ability pay short term obligations. Wal-Mart in the year of 2007 had a quick ratio of .25, and as of January 2008 it had a ratio of .21. Both the current ratio and quick ratio are a measure of liquidity. Wal-Mart is not as liquid as its competitors such as Costco or Family Dollar Stores Inc. I believe the reason why Wal-Mart is not too liquid is because they are heavily investing their profits for expansion and growth. Management claims in their financial report that holding their liquid reserves in other currencies have helped Wal-Mart hedge against inflationary pressures of the US dollar. The next ratio to look at is the inventory ratio which is defined as the cost of sales divided by average inventory. In the year of 2007, Wal-Mart’s inventory ratio was 7.68, and as of January 2008 it was 7.96. Wal-Mart has a lot of sales therefore it doesn’t have too much a problem of holding too much inventory. Its competitors have similar ratios though they don’t have as much sales as Wal-Mart. Wal-Mart’s ability to sell at lower prices for same quality, gives them the edge against its competition. As of the year 2007, Wal-Mart had a debt ratio of .58, and as of January 2008, it had a debt ratio of .59. The debt ratio is calculated by dividing the total debt by its total assets. Wal-Mart has a lot more assets than it does debt so Wal-Mart is not overleveraged.
Net Income: The net income applicable common shares go from June 30th: $219,000,000 to September 30th: 290,000,000 to December 31st 2013: 2,001,000,000 to March 31st 2014: 480,000...
In 2015, the overall loss was $.9 M. The Asian/Pacific market stayed constant while the North American market increased by 1.1%. Both Latin America and EMEA suffered losses of 7.8% and 1.2% respectively.
In November 1999, the firm filed for bankruptcy under chapter 11. Few months later, the firm bankruptcy status was elevated to chapter 7. As a result, Just for Feet was acquired by Footstar, Inc. In addition to acquisition, Footstar, Inc. also leased seventy of Just for Feet outlets until Footstar, Inc. also filed for bankruptcy in 2003. As such, the last just for feet store closed in 2004. Just for Feet filed for bankruptcy as a result of an accounting scandal which will be discussed in details in this paper. The scandal was mainly contributed by the CEO’s concern with analyst’s expectation. During that time, the CEO focus was to ensure that the analyst gave the firm positive reviews that would have improved the firm’s stock performance in the
Walmart is currently the largest retail store in the world. It holds three segments and international businesses around the world. One of the ways it has managed to stay on top of the competition is by having four times more sales than any of its competitors. In this report, I will be analyzing and reflecting on Walmart’s financial information dealing with its statement of cash flows for the fiscal year ending in January 31, 2016 from the SEC 10-K filing.
As you can see in this pie chart for earning per share, the year 2010 has the largest earnings per share. The earnings per share shows how much profit is allocated to each share of stock. The year 2009 is the smallest ratio. The year 2013 is showing the highest ratio. Kraft Food Group needs to increase this amount in order to have more investors.
In 1998, many attempts to strategize the company were employed by both Anita Roddick and Patrick Gourney. Unfortunately, the damage had already been done. Revenues continued to growth; however, pre-tax profits still declined in the years that followed. In 2001, Gourney attempted to reinvent the company and employed several strategies that continued to fail by suggesting increased investment is stores, and attempted to achieve operation efficiencies by reducing product and inventory costs.
The increase in cash and cash equivalents reflected strong cash flows from operations during the year, offset by contributions of $308.1 million to the Corporation's pension plans. Prepaid expenses and other current assets reflected higher prepaid pension expense associated with the funding of pension plans during the year and increased original margin balances for commodity futures. The elimination of current deferred income taxes resulted primarily from the significant liability related to the tax effect on other comprehensive income associated with the gains on commodity futures contracts during the year. Property, plant and equipment was lower than the prior year primarily due to depreciation expense of $155.4 million and the retirement of property, plant and equipment of $19.0 million, partially offset by capital additions of $132.7 million. The decrease in goodwill primarily reflected the impact of the sale of certain confectionery brands to Farley's & Sather's and foreign currency translation. The increase in other non-current assets primarily resulted from the pension plan funding during the
For the most recent year-end, the Company incurred a net loss before taxes of almost $550 million. This loss is non consistent with historical amounts reported by the Company. Two significant factors contribute to the loss.
Seitz, P. 2014, Best Buy Turnaround At Issue After 'Shocking' Holiday Miss CEO: Firm 'Outcompeted' Retailer slashed prices vs. Amazon.com, Wal-Mart; aims to boost online sales, Los Angeles.
With losses of $1.87 million on sales of a record high in net sales of $148 million, the focus is on the income statement. The income statement shown in Exhibit 1 illustrates the problem of spending too much on expenses. The budget on expenses was not clearly thought out, as in 1994 Ben and Jerry’s lost a significant amount of money. If this type of budgeting continues, the ice cre...
Financial statements can provide a wealth of information about a given organization. These statements provide information about the company’s financial position, cash flows, operations, performance and changes in the financial position. This information may be used as part of the decision making process for employees, shareholders, investors and competitors. Based upon these financial statements, key ratios are used to provide additional insight as to the financial health of a given company. Being familiar with financial statements can increase financial literacy. For this discussion, Citigroup’s (Citi) financial statements will be reviewed.