Compute RNOA, Net Operating Profit Margin, and NOA Turnover for Competitors Selected balance sheet and income statement information from Abercrombie & Fitch Co. and TJX Companies Inc. clothing retailers in the high-end and value-priced segments, respectively, follows.

Company ($ millions) Ticker 2015 Sales 2015 NOPAT 2015 Net Operating Assets 2014 Net Operating Assets Abercrombie & Fitch. . . . . . . . . . . . . . . ANF $ 3,519 $ 50 $1,041 $1,213 TJX Companies . . . . . . . . . . . . . . . . . . TJX 30,945 2,307 3,483 3,112

a. Compute the 2015 return on net operating assets (RNOA) for both companies.

b. Disaggregate RNOA into net operating profit margin (NOPM) and net operating asset turnover

(NOAT) for each company. Confirm that RNOA ???? NOPM ???? NOAT.

c. Discuss differences observed with respect to NOPM and NOAT and interpret those differences in light of each company’s business model.