Overstock.com is an online merchandise seller with an appeal of cheaper prices for name brands. Over the past two years this company has seen a dramatic decrease in their assets by as much as $60,000. However they have managed to keep their liabilities reduced through the past two years but about half of how much their assets have decreased. The company’s accumulated deficit has also increased throughout the two year period.
At first glance it may seem like the company’s revenue is a sure sign that they are failing horribly with their direct revenue by dropping at least $100,000 the first year and dropping another $24,000 the next year. Overstock is saved by their partner revenue in the companies that fulfill the orders and complete them to all the customers that buy from overstock.com. This revenue has increased by $90,000 each year and makes up for $500,000 of overstock.com’s total revenue.
Operating expenses have been reduced by $16,000 in the past year as well as a dramatic decrease in operating losses in the company. Also the company’s net loss has been decreasing in all categories. Overall I think that this company is a success because they know what kind of company they are. They realize that the majority of their income comes from their partners that help them ship out the orders of the sales that they make. At first glance it may seem that the company is not doing well because their assets and direct revenue is very poor especially compared to their previous years but again they are saved by their partners by increasing their revenue by about 500%.