Selected balance sheet and income statement information from Urban Outfitters, Inc. and TJX Companies, clothing retailers in the high-end and value-priced segments, respectively, follows.

a. Compute the 2017 return on assets (ROA) for both companies.

b. Disaggregate ROA into profit margin (PM) and asset turnover (AT) for each company. Confirm that ROA= PM x AT.

c. Discuss differences observed with respect to PM and AT and interpret these differences in light of each company's business model.

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2017 Earnings 2017 Without Interest 2017 Total 2016 Total Company ($ millions) Sales Expense (EWI) Assets Assets $ 108 $ 3,616 35,865 $ 1,953 Urban Outfitters $ 1,903 .... TJX Companies 2,653 14,058 12,884