Question: Analyzing and Interpreting Return on Assets Tiffany & Co. is one of the worlds premier jewelers and a designer of other fine gifts and housewares.

Analyzing and Interpreting Return on Assets
Tiffany & Co. is one of the world€™s premier jewelers and a designer of other fine gifts and housewares. Presented here are selected income statement and amounts (dollars in thousands).

Required:
1. Compute ROA for the current and prior years and explain the meaning of the change.
2. Explain the major cause(s) of the change in ROA using ROA profit driveranalysis.

Current Year Prior Year $2,859,997 220,022 $2.938,771 323,478 Net sales Net income Average shareholders' equity Average total assets 1,652,243 1,721,131 2,883,833 3,051,594

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