Office Depot generated sales revenues of $15,010,781 in 2007 (Annual Report, 2007). However, the costs of goods sold and other operating expenditures left Office Depot with only $516 million in assets, which has led to decreased stock/share value for investors and has given Office Depot considerable financial challenges. This change in stock value occurred in a very short period of time. For instance, in January 2007, Office Depot per-share value was $38.00, however, today that stock price is valued at only $1.86 (Finance.yahoo.com, 2008). This represents a significant reduction which is largely based on high volumes of debt for leveraged business operations and international expansion as well as reduced sales volumes from the heavy competition in the home office sales environment.Additionally, the company currently has nearly 399 million investment shares outstanding, suggesting a highly diluted investment strategy where capital is raised continuously using stock equities (Annual Report). When high volumes of shares are on the stock market, the per-share value of the company is reduced, making Office Depot somewhat of a risky investment for long-term (or even short-term) gain. In today’s difficult economic climate, low stock prices created by high dilution rates will prevent the company from generating additional capital in the stock market. a limitation for Office Depot.In terms of cash flow, which provides a portrait of the company’s overall health, Office Depot has experienced a sizeable erosion in cash flow in a one year period. For instance, in 2004, the company maintained a $793 million cash balance at the end of the year. Today, that total is only $173 million, which represents a $620 million decrease in only three years (Annual Report). Large-scale reductions in cash flow and the stock price would point toward a company that requires an immediate change of business strategy and marketing philosophy in order to sustain longevity in the home office sales market.Additionally, Office Depot maintained zero short-terminvestments in the entire fiscal year of 2007, suggesting a financial portfolio that requires diversification to ensure that additional revenues are being generated by investment-minded activities.